Gold is hot — but a classic Warren Buffett rule suggests caution, advisor says

Published On Feb 25, 2025, 2:10 PM

Gold prices have surged significantly over the past year, with the SPDR Gold Shares fund (GLD) seeing an 11% increase in 2025 alone and up 42% compared to the previous year. While gold is often viewed as a safe haven during times of uncertainty, investment experts suggest caution as increased interest in gold may reflect greed rather than a genuine strategic investment. They recommend limiting gold exposure to 1-3% of a diversified portfolio, emphasizing that purchasing gold should not be a knee-jerk reaction to high returns and that potential investors should consider alternatives like gold mining stocks or ETFs.