Top 4 Gold Investing Strategies for Beginners During High Prices

The price of gold has surged in 2024. Starting at $2,063.73 per ounce on January 1, the price rose as high as $2,472.46 on July 17 – a nearly 20% increase in just over six months. And while the price has dropped slightly since then (it’s currently $2,389.99), gold is still significantly more expensive than it was at the start of the year – or at any time previously. So this is a unique time for gold investors, particularly beginners who are just now considering the benefits the precious metal can provide to their portfolio.

For these investors, a more nuanced and strategic approach will be required when investing in the metal now. This will involve avoiding some important but easy-to-make mistakes. It will also mean making the right moves now to immediately reap the advantages a gold investment can provide while also preparing for economic adjustments in what appears to be a changing rate and inflationary climate. Below, we gathered four gold investing moves beginners should consider making with the price high.

4 gold investing moves beginners should make with the price high

As the price of gold continues to rise, here are four moves prospective gold investors should make now:

Buy in now

While today’s high price isn’t ideal, it’s still down from a recent high, thus offering beginners an opportunity to buy in at a discounted cost. And though $2,389.99 per ounce doesn’t feel inexpensive now, it could be soon as many experts expect the price of the precious metal to rise to $3,000 per ounce or higher. So by acting now not only will you buy at a low, but you could be positioned for increasing growth in the months and years ahead.

Get started with a gold investment online today.

Don’t overinvest

Even with a record price (or one hovering near it), the conventional wisdom surrounding gold investing remains the same – keep it limited to 10% or less of your portfolio. This is particularly applicable for beginners who should avoid the temptation to add too much of a safe haven like gold to their portfolio at the expense of more volatile assets like stocks and bonds. With a longer investment horizon to explore than other investor groups, it’s important to heed this advice now, even as the price surges.

Understand how price affects asset types

A rising gold price will affect gold asset types differently. So don’t necessarily expect the same reaction to a rise in gold prices for gold bars and coins, for example, as gold IRAs and gold ETFs. Gold stocks, meantime, could have a separate response to routinely increasing prices. It’s critical, then, to understand how each of these specific investment types operates first. Then do your research to more carefully understand how they respond to a rise in the price. Some may wind up being cost-prohibitive to invest in.

Understand what gold investing is best for

In 2024 you could easily turn a quick profit by buying gold at a low entry point and selling it at a higher one. And while that can be beneficial for some investors, beginners need to understand what gold investing is traditionally used for. And that’s not income generation.

Instead, investors should turn to gold more as a hedge against inflation (by maintaining and rising in value when inflation erodes the purchasing power of the dollar) and a diversification tool for breaking up a portfolio too heavily invested in one or two assets. By truly understanding these features now, even with the price high, beginners will better be able to tailor their gold investment in a way that benefits their portfolio.

The bottom line

As the price of gold continues to break records, beginner investors understandably may want to get involved now. If they choose this asset, however, they should act proactively by buying in now, ahead of likely future price hikes to come. They should also limit their investment to not overwhelm their greater portfolio and go into the process carefully, with a comprehensive understanding of both how the rising price affects different gold asset types and what gold investing is truly best for. By taking these approaches now, beginners will improve their chances of gold investing success both during this historic price period and in the months and years to come.