Gold hit a new high, surpassing $4,000 an ounce, a milestone that had Wall Street buzzing. As the metal hits new highs, veteran hedge fund manager Ray Dalio has urged investors to allocate up to 15% of their portfolio to gold, as debt levels, inflation and government spending erode confidence in paper assets and fiat currencies. Industry experts say there is still room for gold to flow. “We are now targeting $5,000 in 2026. If the price continues on its current path, it could reach $10,000 before the end of the decade,” said Ed Yardeni, president of Yardeni Research, in a note published Wednesday. Beyond the Federal Reserve’s direction toward rate cuts and political uncertainty in the United States, a wave of central bank buying and renewed institutional interest supported gold’s rise. Nicky Shiels, head of metals strategy at MKS Pamp, warns, however, that gold trading could become saturated: “Tactically, gold has risen too much, too fast – $500 in 25 days – and is about 25% above its 200-day moving average,” she said. “Historically, a premium above 20% is short-lived,” Shiels added, expecting a pullback toward $3,600. For investors convinced by Dalio, here are the main ways to gain exposure to the metal. Gold bars and jewelry Gold bars are useful if the objective is a long-term buy-and-hold position for investors looking to diversify their portfolio, and with potential to transfer to the next generation where short-term price action is less relevant, said Gautam Chadda, head of Asia strategic advisory at RBC Wealth Management. Jüerg Kiener, CEO of Swiss Asia Capital, added that “true ownership” of gold is important because exchange-traded vehicles such as ETFs are bound by agreements that can potentially limit outflows. Some funds, particularly those that hold physical gold or operate in less liquid markets, may impose a threshold – a limit on redemptions – if too many investors try to cash out. “Ownership of the metal is key,” he told CNBC. However, other strategists have noted that physical gold may not be the most profitable when it comes to investing in this asset. “You need to find a safe place to store it, especially for gold bars,” said Eddy Loh, CIO of Maybank Group Wealth Management. The same concern arises with jewelry, which is also a traditional way of storing gold. “Older generations love it, but resale value can be difficult: you usually have to sell at a discount,” says Loh. Manufacturing costs and retail markups also mean buyers typically pay above spot prices. ETFs: liquid and low cost? For wealth managers and retail investors in particular, exchange-traded funds remain a better way to take a position in gold. “If I want to have exposure to gold in a multi-asset portfolio, I think ETFs are my preferred route,” Loh said. “It’s liquid, expense ratios are typically a little lower, and it tracks the price of gold closely.” Brian Arcese, portfolio manager at Foord Asset Management, agrees but advises caution in product selection. “For retail investors, we recommend purchasing physical gold through ETFs. It is important that investors choose an ETF backed by physical gold itself and not created through the use of derivatives,” he said. A physically backed gold ETF has gold bars in vaults. ETFs that use futures contracts rely on counterparties such as banks and brokers to honor the contracts and launch the futures contracts. The downsides can be counterparty risk for the manager and custodian, and it can be difficult to redeem ETF shares for physical gold, RBC’s Gautam said. “Investors also need to understand the different types of ETFs and how they gain exposure, so some due diligence will be necessary when choosing a suitable instrument. Not all ETFs are created equal,” he said. Sprott Asset Management CEO John Ciampaglia said physically-backed funds were “the simplest and most convenient way to access London Good Delivery gold bars.” He mentioned the Sprott Physical Gold Trust, traded in New York and Toronto, whose bullion is stored at the Royal Canadian Mint. Gold Mining Stocks Gold mining companies can generate upside leverage if bullion continues to rally, but owning stocks presents a different risk profile, market strategists say. Arcese notes that mining companies are “a relatively high-beta way to gain exposure – their stock prices will be far more volatile than gold itself.” Still, he says some are “not pricing in the current spot price,” meaning profits could surprise if gold holds at $4,000. The NYSE Arca Gold Miners Index, which tracks large, publicly traded gold mining companies globally, is up 126% year to date, according to LSEG data. The MVIS Global Junior Gold Miners Index gained 137% over the same period. Spot gold prices, meanwhile, are up 53% year to date. Owning gold mining stocks carries company-specific risks. “Operational issues like floods or accidents can derail returns even if gold recovers,” Maybank’s Loh warned. For those looking for a basket approach, Ciampaglia suggests the Sprott Gold Miners ETF (SGDM), which holds some of the largest producers. But he and Kiener cautioned that popular mining stock ETFs like the VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ) may be convenient for traders but may not be optimal long-term vehicles due to other built-in costs such as management fees, portfolio turnover and trading spreads.