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Gold investing has seen a surge of interest in recent years thanks to an inflationary economic climate and the benefits the precious metal can provide when prices rise. But with inflation cooling and cuts to interest rates looming for later this year, those who invest in gold now will be entering a different market than those who invested in the shiny metal in 2022 and 2023.
That doesn’t mean that gold investing still can’t be advantageous, however. Prospective investors just need to be aware of the timely pros and cons of investing in gold right now to maximize their returns. And while some of these factors are the same as they’ve traditionally been, others may be more specific to investing in gold this September. Below, we’ll break down what you need to know before getting started with gold.
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Gold investing pros and cons to know this September
Considering a gold investment this month? Here are the pros and cons to getting started now.
Pro: The price is rising
It’s always good to get invested early when prices are low. And while no one would consider gold cheap right now (it’s hovering around $2,500 per ounce), the continuously rising price is an advantage for many investors. With numerous price records already broken this year and the potential for gold to surpass $3,000 an ounce soon, investors who get started with gold now could turn a quicker profit than they normally would by investing in precious metals.
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Con: The price could already be too high
Gold started 2024 priced at $2,063.73 an ounce but has seen more than 20% growth this year. That means the price of the metal could already be too high for many to invest in. And with factors like geopolitical tensions and economic uncertainty still potent – both of which drive the price of gold – the window of opportunity to benefit from a gold investment may have already ended for some.
Pro: You’ll protect your portfolio ahead of major economic changes
With concerns over unemployment, a steadily cooling inflation rate and multiple prospective interest rate cuts to come, major economic changes will likely soon take place. In times like these investors can benefit from the security that gold can offer your portfolio. While stocks and bonds may rise and fall depending on the aforementioned factors, gold tends to maintain and even rise in value during these circumstances. So by investing now, you’ll be better able to withstand these developments when they occur.
Con: It takes time to learn about gold
Gold can be a smart investment for both beginners and veterans. But it does take time to learn about the metal. With so many different types to choose from, each with its own set of unique benefits and drawbacks, it can take time to learn about gold to improve your returns. And in today’s rapidly changing climate, that could be a con for many when there are other, less complex investments to pursue (and benefit from).
Additional Insight: Gold is often considered a hedge against inflation, making it attractive to investors concerned about economic stability.
Pro: Gold is ubiquitous
Gold is seemingly ubiquitous right now. Not only can investors turn to the traditional ways of getting started with local dealers, jewelers and pawnshops but they can also peruse multiple gold investing companies online right now. And if they prefer to use retailers they already shop with, both Walmart and Costco sell physical gold on their websites. So if you want to get invested this September, you have multiple accessible (and familiar) ways to do so.
Con: It’s a long-term investment
Gold, historically, is more of a long-term safe-haven investment versus an income-producing one in which you can turn a quick profit. While you can, theoretically, make some quick money with it now thanks to its rising price, gold is better approached as a long-term component of your portfolio. This may not be a con for some investors but for those looking to make money quickly or for those with an abbreviated investment plan, now is not a great time to get invested in the precious metal.
The bottom line
With gold’s rising price and the potential for major economic developments in which gold can act as a portfolio protector, now is a great time to get invested in the metal. But, like any other asset, there are some drawbacks to gold that investors should be aware of, too. By understanding the above pros and cons, and applying these nuances to their own portfolios, investors can best determine if gold is the right move for them this September as well as in the months ahead.
Have more questions? Learn more about the pros and cons of gold investing here.
