Gold Prices Soar, Outperforming Stocks

Experts weigh in on adding gold to retirement accounts

Published on Mar. 8, 2026

Got story updates? Submit your updates here. ›

Gold prices have surged 74% over the past year and 201% over five years, outperforming stocks. Financial analysts say gold can be an effective diversifier in investment portfolios, as the gold and stock markets often move in opposite directions. However, gold hasn't always performed as well as stocks historically. Experts recommend allocating a small portion, typically 2-5%, of a retirement portfolio to gold investments like ETFs or mutual funds, rather than directly purchasing physical gold.

Why it matters

The recent spike in gold prices has made it an attractive investment, but it's important for investors to understand the pros and cons of adding gold to their retirement accounts. Gold can provide diversification and a hedge against inflation, but it also carries risks and has underperformed stocks over the long term. Determining the right allocation to gold is crucial for building a balanced retirement portfolio.

The details

Gold prices have surged due to factors like global trade tensions, weakening demand for the U.S. dollar, and strong interest from central banks and investors. Gold reached a historic high near $5,560 per ounce in January 2026 before declining to below $5,200 as of early March. Experts caution that it's difficult to predict future gold prices, as the metal's value is tied to factors like economic uncertainty and investor sentiment. While gold is considered a 'store of value,' it has not always outperformed stocks over the long term.

  • Gold prices spiked in 2025 due to global trade tensions and other factors.
  • Gold reached a historic high near $5,560 per ounce in January 2026.
  • As of March 6, 2026, gold prices hovered below $5,200 per ounce.

The players

Stephen Kates

A financial analyst at Bankrate.

Jeff Farrar

A certified financial planner in Shelton, Connecticut.

Melissa Cox

A certified financial planner in Dallas.

Got photos? Submit your photos here. ›

What they’re saying

“It's a diversifier. Gold tends to have lower correlation to stocks and bonds. If we look just in the last year, obviously gold has had tremendous growth. In hindsight, it's obvious why we would want to own it.”

— Stephen Kates, Financial Analyst (Bankrate)

“Historically, the S&P 500 has outperformed gold. Since COVID, that's not been the case, and especially in the last 12 to 18 months.”

— Jeff Farrar, Certified Financial Planner (Shelton, Connecticut)

“I'm leaning more toward the gold ETFs, just because the fees and expenses seem to be a lot lower.”

— Melissa Cox, Certified Financial Planner (Dallas)

The takeaway

While gold's recent performance has been impressive, investors should carefully consider the role of gold in their retirement portfolios. Gold can provide diversification and a hedge against inflation, but it also carries risks and has not always outperformed stocks over the long term. Experts recommend allocating a small portion, typically 2-5%, of a retirement portfolio to gold investments to balance the potential benefits and drawbacks.