How to take advantage of the 2024 surge in gold prices

CNN
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The Surge in Gold Prices

Not all that glitters is gold, but the value of the precious metal has been surging this year.

Gold prices have broken record after record, rising more than 30% in 2024 while hitting an all-time high of $2,748.23 this week.

Factors Driving the Gold Rush

The Federal Reserve’s recent dramatic half-point interest rate cut, geopolitical tensions, and economic uncertainty surrounding the US presidential election have created the conditions for prices to soar. The rally has been boosted by the central banks of China, India, and Turkey easing their reliance on the US dollar as well as retail giant Costco stocking 1-ounce bullion bars.

“Costco offering gold makes it as easy for a retail investor to buy gold as it is for them to buy household staples,” said Joseph Cavatoni, senior market strategist for the World Gold Council. “Buying gold has never been easier and more accessible.”

Considerations for Investors

While gold is typically invested in as a hedge against inflation, there are several things to consider before joining the gold rush.

Traders tend to flock to gold during periods of uncertainty, anticipating that its value will hold up better than other assets in the event of an economic downturn.

Investment Strategies

The first step for a new gold buyer is to determine their objective in holding gold, whether for portfolio diversification or as a safe-haven asset.

Cavatoni emphasizes the importance of acting prudently and conducting thorough research before investing in any form of gold.

“It’s just like buying a stock,” Cavatoni said. “You can do that commission-free on a lot of the platforms these days, so it’s very cheap to get in and out.”

Final Thoughts

“If something sounds too good to be true, then it might be not true. Make sure you’re careful before you make the investment,” Cavatoni said. “You don’t need to rush into owning gold.”