2025-04-30
Gold has long been considered a reliable store of value, but like any investment, it's not without its risks. Many first-time investors make avoidable mistakes that reduce their returns or increase their exposure to loss.
Here are five common pitfalls to watch out for — and how to sidestep them.
Many people rush into gold investing during economic panic without thinking through their long-term goals.
Having no plan can lead to impulsive decisions and mistimed exits.
Buying physical gold involves more than just the market price.
These additional expenses can significantly reduce your effective returns.
Trying to buy gold at the "perfect" moment often backfires.
Rather than chasing trends, focus on steady, disciplined buying or dollar-cost averaging.
Putting all your money into gold exposes you to concentration risk.
It’s best used as a complement to a diversified investment strategy — not a replacement for it.
Not all gold is easy to sell quickly.
Always understand how — and how fast — you can convert your gold investment into cash when needed.
Gold can be a valuable part of your financial strategy, but only when approached with knowledge and caution. Avoid these common missteps, and you'll be better positioned to make gold work for your long-term goals.
Looking to start with gold ETFs or physical bullion? Our upcoming guide will walk you through the pros and cons of each format.