Should I Invest in 1-ounce Gold Bars in September?

Over the last few months, investor attention has been largely focused on one asset in particular: gold. While the precious metal has always had an allure for investors, this renewed attention is due, in large part, to gold’s remarkable price journey so far in 2024.

While gold is typically considered a long-term investment, the precious metal has recently bucked that trend, growing in value by hundreds of dollars since the start of the year. The yellow metal was trading at just $2,063.73 per ounce on January 1 but is now sitting at $2,522.28 per ounce (as of August 30). That represents an increase of over $448 per ounce — or an uptick of over 22% — in less than a year. 

As we approach September, gold prices are teetering on the verge of yet another historic peak, but economic conditions are also shifting. Inflation has been cooling and the Federal Reserve appears poised to cut rates in September, which could have an impact on the gold investing landscape. This raises an important question for investors: Are 1-ounce gold bars, one of the most popular physical gold investments, still worth investing in this September?

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Will 1-ounce gold bars be worth investing in this September?

The short answer to that question is yes, in most cases, 1-ounce gold bars will likely continue to be a good investment this September, even with the shifts in the economic landscape. Here’s why:

Potential price increases

Gold’s explosive growth so far this year presents a compelling case for quick returns on your investment. With prices soaring by over 22% since January, the gold investors who bought in earlier this year have already seen their investments grow by hundreds of dollars or more, depending on their initial investment. In addition to central banks and investors keeping the demand high, gold’s limited supply and the increasing difficulty of extracting it are also playing a role. Market analysts expect continued upward movement in the coming weeks and months, making it a good time to consider investing in 1-ounce gold bars for potential short-term gains.

Timing is critical when it comes to investments, as delaying your purchase could raise the entry point, potentially reducing the possibility of rapid gains.

Liquidity advantages

1-ounce gold bars are known for their liquidity, being a globally standardized unit recognized and traded worldwide. This high level of acceptance means you can easily sell these bars anywhere, from local gold dealers to international markets. The balance between value and practicality in the 1-ounce size makes them easier to sell in part without needing to break down larger bars. Additionally, these bars typically have a lower premium over the spot price of gold compared to smaller denominations, allowing you to recoup a larger percentage of your investment when selling.

Diversification benefits

Incorporating 1-ounce gold bars into your investment portfolio offers diversification benefits by adding a versatile asset that moves independently of stocks and bonds. This move provides a counterbalance during market downturns and protects against local currency depreciation. In times of economic or geopolitical uncertainty, gold acts as a safe-haven asset. By diversifying with 1-ounce gold bars, you enhance your portfolio’s stability, protect against economic scenarios, and store physical value for long-term security.

The bottom line

As gold continues its upward trajectory, the case for investing in 1-ounce gold bars remains strong, offering potential for quick appreciation, liquidity advantages, and diversification benefits. However, waiting too long to invest may result in a higher entry point and reduced opportunities for immediate returns. Consider adding 1-ounce gold bars to your portfolio now to take advantage of the current market conditions.