Are gold bars and coins a smart investment right now?
Gold's price performance has been nothing short of astounding in 2024. After starting the year at $2,063.73 per ounce, gold steadily climbed to over $2,700 by late October, fueled in large part by its reputation as a hedge against inflation and a safe haven during economic uncertainty. This surge also drew in opportunistic investors who were eager to capitalize on what seemed like an unstoppable rally for an asset that has historically been a long-term investment vehicle.
However, the market's dynamics shifted dramatically in early November. After hitting a new record high of $2,736.35 per ounce, gold prices took a nosedive, declining by approximately 6% in the days following the U.S. presidential election. But while that downturn may seem like a warning sign to avoid gold investing for now and focus on less volatile assets instead, this type of price volatility can actually create strategic opportunities in the gold market.
As a result, the key question for many investors isn't whether to invest in gold right now, but rather which form of gold investment could offer the best value proposition during this period of price adjustment. So does it make sense to buy physical gold, particularly in the form of bars and coins, right now — or would buying another type of gold asset make more sense?
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Are gold bars and coins a smart investment right now?
While it's important to make investing decisions based on factors like your overall goals, portfolio health and budget, adding gold bars and coins to your portfolio could be a wise move to make in the current market. Here's why:
You could buy in at a lower price point right now
As an investment, gold typically performs best over the longer term, but its impressive price rally over the last year has demonstrated the precious metal's potential for significant appreciation over the shorter term, too. Overall, gold's price has appreciated by about 30% since January 1, 2024 — which means the returns have outpaced many other types of investments.
And when the price correction in early November pushed prices to below $2,600, it created a potentially attractive entry point for investors. While the price has bounced back a bit since that time, gold's price is still lower than it was in recent weeks, offering you an opportunity to acquire physical gold at a relative discount compared to its peak prices. By buying in at a lower price point now, you can potentially position yourself for quick gains as the market recovers.
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Gold's price has already started to recover
Gold has a long history of regaining and surpassing its value after corrections, and over the last few days, the price of gold has headed back upward. The precious metal is now trading at over $2,650 per ounce — a clear sign of how resilient this asset is. So, if you're eyeing short-term gains, this could be one of the last opportunities to buy gold at a lower price before its value climbs further.
While there's no guarantee that gold will continue to climb, many analysts are predicting that gold's price could reach or even exceed $3,000 per ounce by the end of the year. This dual potential for short-term profit and long-term reliability makes this an opportune moment to consider adding gold bars and coins to your portfolio.
Gold bars and coins offer other unique benefits to investors
Beyond price movements, gold bars and coins offer unique advantages that appeal to a broad range of investors. For starters, gold is an effective hedge against inflation. While inflation has cooled significantly from recent highs, it ticked up slightly last month, raising concerns about whether further increases could follow. But gold bars and coins are well-suited to counteract the effects of rising prices, preserving purchasing power even as paper currencies lose value.
Another advantage of physical gold is its tangibility. Unlike stocks or digital assets, gold bars and coins provide a sense of security that comes from owning something you can hold in your hand. This quality makes gold particularly appealing during periods of financial instability. Gold bars and coins are also highly liquid, meaning they can be easily bought or sold when needed. This flexibility, combined with their durability and universal appeal, ensures that physical gold remains a valuable asset regardless of market conditions.
The bottom line
Gold bars and coins have always been a solid investment, but the current market presents a particularly compelling case for their inclusion in your portfolio. With prices slightly below recent highs, you have a chance to buy in at an attractive price before further increases occur. Plus, gold's track record of resilience, coupled with its unique benefits as a tangible and inflation-resistant asset, make it a smart choice for both novice and experienced investors. So, whether you're seeking short-term gains or long-term stability, gold bars and coins could offer a reliable and rewarding investment opportunity right now — but if you wait, you could miss out.
