What is the best way to buy and store gold for maximum results in 2025?

When the global economy is filled with uncertainty, investing in gold has become an increasingly attractive option for investors, especially after gold prices surged to $2,790 per ounce in 2024. The key question is what type of gold to buy to maximize profits in 2025.

Why Are Gold Prices Still Rising?

The upward trend in gold prices is driven by several factors. Starting with ongoing geopolitical conflicts around the world, such as the Russia-Ukraine war or tensions in the Middle East, prompting investors to seek safer assets.

Another significant factor is the gold purchases by central banks worldwide. In the first quarter of 2024, net purchases reached 290 tons, which exceeded the quarterly average by 36%, particularly China, which increased holdings from 1,900 tons to over 2,500 tons to reduce reliance on the US dollar.

Additionally, monetary policy expectations that the Fed will cut interest rates in early 2025 are positive factors. Lower rates reduce the opportunity cost of holding gold and make gold more attractive compared to interest-bearing assets.

How Do Leading Financial Institutions View Gold Prices?

Goldman Sachs has revised its forecast, expecting gold to reach $2,700 per ounce, believing that demand from central banks and geopolitical risks will support prices.

J.P. Morgan has a more cautious outlook but remains positive, noting that despite high interest rates, expected rate cuts and central bank demand could sustain prices.

FX Empire has the most optimistic view. AG Thorson believes that if geopolitical tensions escalate or a recession occurs, gold could reach $3,000 per ounce in 2025.

Morgan Stanley forecasts around $2,800 per ounce, while UBS sees the rise as too rapid and expects a short-term correction.

Technical Analysis: Where Is It Heading?

Gold has a key support level at $2,447 per ounce, which is the 200-day moving average, and a resistance level at $2,800. Staying above support indicates a continued bullish trend.

The RSI index has fallen from overbought levels, indicating that the oversold condition has been corrected and that prices could rise further. The MACD is approaching the Zero Line; if it remains above this line, it confirms a medium-term bullish trend.

Increased trading volume during price rises is a positive sign of market confidence.

What Type of Gold Should You Buy?

Define Your Holding Period

For long-term investments of 3-5 years, gold is an excellent diversification tool because it often moves inversely to stocks and risky assets.

For short-term periods of 6 months to 1 year, caution is advised due to potential volatility, and a clear entry and exit plan should be in place.

Maintain a Balanced Investment Portfolio

Experts recommend allocating 5-10% of your total portfolio to gold. For example, if you have 1 million THB to invest, consider investing about 50,000-100,000 THB in gold. Avoid exceeding 15-20% to maintain balance.

Reasonable Entry Points

Based on technical analysis, gold has a significant support at $2,447 per ounce, making it an attractive entry point. If prices drop below $2,500, it could be an opportunity to accumulate more.

A good strategy is Dollar-Cost Averaging (DCA): divide your investment into 4-6 parts and buy gradually as prices adjust, rather than investing all at once.

( Reasonable Risk Assessment

Although gold is a safe asset, there are risks of losses, especially in the short term. Historically, gold prices can decline 10-15% during volatile markets or financial crises, and in severe cases, drop 20-25%.

For example, if you invest 100,000 THB, be prepared for a short-term loss of 10,000-15,000 THB, or in worst cases, 20,000-25,000 THB.

How Long to Wait for Profits?

If you buy at $2,500 per ounce and aim for $2,800-$3,000, the expected profit is 10-20%, according to financial institution forecasts. This target could be achieved within 2025, roughly 6-12 months.

Summary

Investing in gold in 2025 looks promising due to solid fundamentals, consensus among financial institutions, and technical trends pointing in the same direction.

However, the key is planning: buy within a reasonable portion of your portfolio, use a gradual buying strategy, set long-term goals, and be prepared for short-term volatility. Gold investment should be part of a broader strategy, including holding other assets for proper diversification.

Warning: Investing involves risks and may not be suitable for everyone. Conduct thorough research and consult with a professional before making decisions.