Gold Trading Surge: Understanding the $10K Trajectory and Investment Strategies

As forecasts suggest gold could reach $10,000 per ounce within the next three years, investors are increasingly exploring ways to cash in on this potential uptrend. Fortune’s recent analysis highlights gold’s evolving role beyond traditional inflation hedging, positioning it as a tactical wealth-building asset. Understanding the mechanics of gold investment requires examining multiple approaches and risk factors.

Two Primary Pathways: Paper vs. Physical

The gold investment landscape divides into two distinct channels. According to Jose Gomez, co-founder of Summit Metals, “Paper gold through exchange-traded funds (ETFs) offers quick entry but sacrifices privacy and exposes investors to counterparty risks. Physical bullion addresses these concerns but demands higher upfront costs and more complex logistics.”

ETFs like GLD or PHYS provide the most accessible entry point for retail investors, tracking spot prices minus minor annual fees within standard brokerage accounts. Vince Stanzione, founder of First Information, emphasizes this method eliminates storage complications entirely. However, Gomez warns of delivery failures—citing silver market backwardation as evidence of systemic counterparty vulnerabilities that physical ownership circumvents.

Strategic Allocation: Determining Your Position Size

Sizing a gold position requires portfolio analysis rather than guesswork. Alex Tsepaev, chief strategy officer at B2PRIME Group, notes that gold historically thrives in low-rate environments: “With the dollar weakening and rate-cut expectations rising, gold functions as genuine wealth preservation.”

Expert recommendations converge on conservative allocation ranges. Gomez suggests 3-5% of net worth for general investors, scaling to 5-7% for those approaching retirement. This parallels bond allocation philosophy—treating gold as an inflation-resistant stability anchor rather than a wealth-multiplication vehicle.

For physical acquisitions, Stanzione advises tracking the spot price online and negotiating as close to this benchmark as possible, avoiding premium collectible coins or packaging costs.

Exit Strategy: The Often-Overlooked Component

Success requires planning the departure before entry. Paper gold enables instantaneous liquidation—a simple sell order executes within minutes. Physical gold demands different logistics: contacting bullion dealers, arranging insured shipment, and awaiting wire transfers to banking accounts.

Gomez clarifies this seeming disadvantage: the bullion industry’s maturity ensures comprehensive shipment insurance and expedited fund transfers, mitigating execution friction. However, the timeline extends from minutes to days rather than seconds.

Wealth Preservation vs. Wealth Creation

A critical reframing: gold functions as net worth insurance rather than billionaire-making vehicle. Gomez compares it to home equity—steady appreciation and protection accumulate over years through passive holding, not speculative trading. This positions gold as foundational portfolio infrastructure during uncertain macro environments.

The $10,000 trajectory reflects legitimate supply-demand dynamics rather than speculative euphoria, making current research essential before deploying capital. Individual risk tolerance ultimately determines position sizing, making consultation with multiple qualified dealers prudent for those pursuing physical exposure.