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Gold is making headlines in 2024, as the spot price of gold hit several record milestones in March, April, and May. Most notably, gold’s price peaked at a record $2,435 per ounce on May 20. The price of gold then adjusted slightly, but subsequently hit yet another record price this week when it climbed above $2,472 per ounce. Today’s gold price (as of July 18, 2024) is just slightly lower at about $2,468 per ounce.
Not surprisingly, gold’s strong performance has generated considerable interest from investors looking to capitalize on the recent pricing trend as well as long-standing gold benefits like hedging against inflation. Gold is also an excellent investment option if you’re looking to diversify your portfolio with a highly liquid asset.
Before investing in gold, it’s important to have the right strategy in place. As you might expect, there are several gold investing options and tactics to consider.
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These are the best gold investing strategies right now, experts say
Here’s a breakdown of some popular gold investing strategies, according to experts.
Buy gold coins
Many gold investors like the security of owning the physical gold itself. You can buy gold coins at reputable gold dealers, but expect to pay a markup on the price. That’s why you might see two different prices for two coins of the same size and gold consistency.
Gold coins come in bullion or numismatic form, and their difference lies in their intrinsic value. Bullion coins are valued based on their gold content, while numismatic coins are collectibles valued for their rarity and other factors.
Many experts do not recommend numismatic coins as an investment, namely because of the added variables that contribute to their value. However, bullion gold coins are considered a good investment by experts.
Government-minted gold coins like the American Eagle or Canadian Maple Leaf are universally recognized and produced in limited supply, driving up their demand.
It’s worth noting that gold coins can offer a sense of security and tangibility that other forms of gold investments may not provide.
Invest in gold ETFs and mutual funds
Gold exchange-traded funds (ETFs) and mutual funds are a common entry point for many new gold investors due to the liquidity and tradeability they offer. These funds provide exposure to gold assets like bullion or gold mining company stocks. Different funds have varying levels of exposure and risk, so it’s essential to understand the specifics of each fund before investing.
Gold ETFs and mutual funds can be attractive options for investors seeking to diversify their portfolios with gold assets without the need for physical storage or handling. They can also provide leveraged exposure to gold miners, potentially enhancing investment returns beyond spot prices.
Open a gold IRA
Considering gold’s reputation for hedging against inflation and providing stability during uncertain times, a gold individual retirement account (IRA) can be a strategic long-term investment. A gold IRA allows investors to hold physical gold in their retirement accounts, offering potential tax benefits and portfolio diversification.
While the process of including gold in an IRA may involve additional steps and considerations compared to traditional investments, the benefits of holding gold in a tax-advantaged account can be significant for retirement planning.
Gold IRA companies can provide guidance and support throughout the process of setting up a gold IRA, ensuring compliance with IRS regulations and facilitating the transfer of physical gold into the account.
The bottom line
Choosing the best gold investment strategy depends on your investment goals and risk tolerance. Whether you opt for owning physical gold coins, investing in gold ETFs and mutual funds, or opening a gold IRA, each approach offers unique benefits and considerations. By diversifying your investment portfolio with gold, you can enhance its resilience against market volatility and economic uncertainty while potentially benefiting from the long-term appreciation of precious metals.
Additional Insight:
Considering the current economic climate, where uncertainties and market fluctuations are prevalent, investing in gold can serve as a reliable hedge against inflation and financial instability. The versatility of gold investment options allows individuals to tailor their investment strategies based on their risk appetite and financial objectives. Whether seeking tangible assets through physical gold coins or exploring the convenience of gold ETFs and mutual funds, investors have a range of choices to leverage the unique properties of gold for wealth preservation and growth.
