Are gold ETFs worth investing in right now?

Angelica Leicht, Senior Editor for the Managing Your Money section at CBS News, published an analysis on March 5, 2026, examining whether gold exchange-traded funds (ETFs) represent worthwhile investments in the current market, prompted by gold's recent price surge that has pushed it above $5,100 per ounce amid persistent geopolitical tensions and inflation concerns. Gold has rarely been out of financial headlines recently, with its price skyrocketing past $5,500 per ounce in late January before moderating slightly, yet remaining at levels few investors anticipated just a few years ago. This rally has renewed interest in precious metals as portfolio hedges and prompted questions about the best gold assets for investors seeking exposure without the complexities and high costs of physical ownership. Gold ETFs have emerged as a popular alternative, allowing investors to track the metal's price through the stock market with the convenience of purchasing and selling shares like regular stocks. Gold ETFs offer several compelling advantages for investors, including easy access to the gold market through brokerage accounts without the need for dealing with precious metal dealers, storage solutions, or insurance requirements. These funds provide high liquidity and flexibility, trading throughout the day on major exchanges, enabling investors to buy or sell shares whenever the market is open—a particularly beneficial feature during periods of market volatility. Additionally, gold ETFs remove the high upfront investment barriers associated with physical gold, allowing investors to purchase fractional exposure with significantly less capital. However, these funds come with important limitations, as investors don't actually own physical gold when purchasing shares, and management fees, though typically small, can reduce long-term returns over time. For investors considering gold exposure, several alternatives to ETFs exist, including physical gold bars, which often carry lower premiums over spot prices than coins; gold coins, which remain popular for their recognition and liquidity; gold mining stocks, which can benefit from improved profit margins when gold prices rise; and gold mutual funds offering professional management within the precious metals sector. The article concludes that while gold ETFs can be useful tools for simple, liquid exposure to the metal, they may not fully replace the benefits of owning physical precious metals for all investors. A balanced approach combining different types of gold assets may provide the most diversified exposure, with the optimal strategy depending heavily on individual goals, risk tolerance, and investment time horizon.