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Those who thought gold prices peaked after a slower start to the summer were pleasantly surprised last week when the precious metal surged to its latest record high, hitting $2,472.76 per ounce on July 17. That comes after the yellow metal had broken numerous price records so far in 2024 — and after it started at just $2,063.73 per ounce on January 1. That’s an almost 20% increase in just over six months.
Against this unique price backdrop, then, both experienced investors and beginners may be considering the benefits gold can provide to their portfolio now. But as the price rises and with the potential for the price of gold to hit $3,000, according to some experts, it behooves investors to get started sooner rather than later. Below, we built a list of some ways to take advantage now.
Start by exploring your available gold investing options online today.
How to take advantage of gold’s rising price
If you’re looking for the hedge against inflation and portfolio diversification that a gold investment can offer then you’ll want to get invested now. Here’s how to do so even as the price continues to tick upward:
Buy in now
Waiting for an ideal time or price to buy gold could be a major mistake. Not only is the precious metal not expected to drop in value, but many experts expect it to rise even further. And in the face of geopolitical tensions abroad and a presidential election in the U.S., the price could rise sooner than expected (both factors play a large role in the price of gold). So it makes sense to buy in now before the price becomes prohibitive.
And it’s helpful to remember that you don’t necessarily have to pay the full price noted above. You could shop around to find deals with top gold companies or even consider buying less than a full ounce worth (fractional gold) to secure the benefits gold can provide without having to pay too much.
Consider physical gold
Physical gold is easy to find, simple to buy and it can be sold at a markup. Plus, with the right approach, it can be easy to authenticate. 1-ounce gold bars, coins and other types and sizes can be particularly beneficial for you, depending on your goals and expectations. And while not normally considered a way to generate income, today’s rising price provides investors a rare opportunity to potentially turn a quick profit with gold. The tangibility and ease of access a physical gold investment provides — compared to gold ETFs or IRAs, for example — make it an opportune type to buy right now.
Limit your investment
A continuously rising price could tempt some investors to purchase large amounts of gold, no matter the form they choose. The more you buy now the more you stand to make in profit. But that would be a mistake. Conventional wisdom dictates that gold should make up a maximum of 10% of your overall portfolio (or less). A rising price does little to detract from this advice and actually underlines its importance.
Gold’s prices, after all, evolve as the economic climate does. So it’s more important in these changing times to have a diversified portfolio made up of stocks, bonds and alternative assets like gold versus one heavily made up of just one specific class.
Learn more about how gold can boost your portfolio online.
The bottom line
A rising price could deter some prospective gold investors from getting started now. But with a strategic and nuanced approach, they can still take advantage of the benefits and protections gold traditionally offers. Specifically, they should consider buying in now before the price rises yet again and the cost becomes prohibitive. They should also consider the benefits and flexibility a physical gold investment offers now when compared to other, less tangible gold investment types and they should avoid the temptation to over-invest in the metal, even with the prospect of future price hikes high at the moment. By taking these approaches now investors can potentially capitalize on today’s high gold price while also positioning themselves for additional price growth in the weeks and months ahead.
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
