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Known for its ability to hedge against inflation and economic turmoil, gold has captured a lot more investor attention lately. The precious metal has been breaking price records all year, reaching an all-time high of $2,672 per ounce in September.
With gold prices soaring, many wonder if this upward trend will continue. Could gold hit the $3,000 mark by the end of 2024?
We asked financial experts to weigh in on this golden question. Their insights might surprise you and help shape your investment strategy. As we explore the potential for gold to reach new heights, we’ll also look at smart ways to invest in this precious metal now.
Start exploring your top gold investing options here now.
Will the price of gold hit $3,000 in 2024?
Some industry experts say 2024 could see gold’s price reaching $3,000, but it’s more probable in early 2025. Below, we explore two scenarios based on their insights.
Yes, gold could hit $3,000 in 2024
The price of gold per ounce could reach $3,000 in 2024, but certain conditions need to align.
Steven Kibbel, a certified financial planner and senior editor at InternationalMoneyTransfer.com, points out that gold often thrives when there’s high inflation or economic instability. “Potential interest rate cuts and ongoing uncertainties in [other countries] could [also] drive up gold prices,” he explains. Lower interest rates make bonds less attractive, potentially increasing gold’s appeal.
However, Kibbel urges caution: “There’s no guarantee of it — gold tends to rise during erratic markets.” He points to the 2020 pandemic as an example when many conservative investors boosted their gold holdings “because they were concerned about inflation.” If inflation stays low and the U.S. economy continues to grow, gold’s price could level off or decrease.
While he believes $3,000 is possible, Kibbel suggests a more realistic target of up to $2,800 in 2024.
Insight into Gold Investment
Investing in gold offers a hedge against economic uncertainty and can play a crucial role in diversifying a portfolio. Gold’s value typically rises during periods of high inflation, making it an attractive investment option for many investors.
Get invested in gold before the price grows out of reach.
No, gold won’t hit $3,000 in 2024
Despite gold’s impressive performance, some experts doubt it’ll reach $3,000 by the end of 2024.
“It’s doubtful that the price of gold will hit $3,000 by year-end [after already] climbing over 20%,” says Ed Mahaffy, president and senior portfolio manager at ClientFirst Wealth Management. He expects the current price surge to level off, describing a potential “ramp and camp” scenario where prices stabilize within a five to seven percent range of recent highs.
An optimistic yet realistic estimate comes from Bario Neal’s director of operations and finance, Ruhee Rathod. “[There’s a strong chance] gold [will hit] $2,850 per ounce in 2024, with the potential to hit the $3,000 mark by early 2025,” she says.
Rathod cites growing interest from investors seeking to diversify as key price drivers. Although bullish on gold’s prospects, Rathod thinks $3,000 might be out of reach this year.
Smart strategies for investing in gold today
Kibbel advises investors to focus on gold’s role in a diversified portfolio rather than fixating on whether the price of gold will cross $3,000 soon. “Gold has helped shield portfolios during market downturns, even when its price stalls,” he reminds us. With that in mind, he and Rathod share five effective ways to invest in gold in today’s market:
- Physical gold: Buy gold bars, coins or jewelry for a tangible investment. This hands-on approach is appealing if you prefer to hold your assets directly.
- ETFs and mutual funds: Invest in gold exchange-traded funds or mutual funds for easier, more affordable exposure to gold without buying it by the ounce.
- Futures and mining companies: Consider gold futures or shares in mining companies for indirect exposure to gold price movements, potentially getting higher returns (but with increased risk).
- Balanced allocation: Aim to invest up to 10% of your portfolio in gold as a hedge against market volatility and inflation. In times of uncertainty, this could be increased to 15% — but never rely too heavily on a single asset.
- Diversified gold investments: Combine physical gold, gold ETFs and mining stocks to balance stability with growth potential while maintaining portfolio flexibility.
The bottom line
When gold investing, consider how it fits into your broad financial strategy. Kibbel advises weighing liquidity and tax implications: “ETFs and mining stocks are much simpler to trade [than physical gold] … [plus, gold is] frequently taxed more heavily than equities or bonds.”
Before making any moves, consult a trusted financial advisor and a tax expert. They can help you decide how much to invest, which type of gold suits you best and how to balance it with other investments. Start small, perhaps with a gold ETF, and consider dollar-cost averaging to spread out your investment over time. Remember, gold is a long-term play — not a get-rich-quick scheme.
Learn more about your best gold investing options online now.
