Top Gold Investing Strategies Recommended by Experts

Gold is making headlines in 2024, as the spot price of gold hit several record milestones in March, April and May. Most notably, gold’s price peaked at a record $2,435 per ounce on May 20. The price of gold then adjusted slightly, but subsequently hit yet another record price this week when it climbed above $2,472 per ounce. Today’s gold price (as of July 18, 2024) is just slightly lower at about $2,468 per ounce.

Not surprisingly, gold’s strong performance has generated considerable interest from investors looking to capitalize on the recent pricing trend as well as long-standing gold benefits like hedging against inflation. Gold is also an excellent investment option if you’re looking to diversify your portfolio with a highly liquid asset.

Before investing in gold, it’s important to have the right strategy in place. As you might expect, there are several gold investing options and tactics to consider. 

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These are the best gold investing strategies right now, experts say

Here’s a breakdown of some popular gold investing strategies, according to experts.

Buy gold coins

Many gold investors like the security of owning the physical gold itself. You can buy gold coins at reputable gold dealers, but expect to pay a markup on the price. That’s why you might see two different prices for two coins of the same size and gold consistency. 

Gold coins come in bullion or numismatic form, and their difference lies in their intrinsic value. Bullion coins are valued based on their gold content, while numismatic coins are collectibles valued for their rarity and other factors. 

Many experts do not recommend numismatic coins as an investment, namely because of the added variables that contribute to their value. However, the experts we spoke with believe bullion gold coins are a good investment. 

“Bullion gold coins, I think, are a terrific investment and, in fact, are a superior investment choice to bars,” says Brandon Thor, CEO at Thor Metals Group. “Bullion means gold that derives its value solely from its weight, purity, quality, and supply and demand market. Coins are produced by countries or government mints while bars are generally produced by private manufacturers.”

Thor notes that government-minted gold coins like the American Eagle (U.S.) or Canadian Maple Leaf (Royal Canadian Mint) are universally recognized and produced in limited supply, both of which drive up their demand.

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Invest in gold ETFs and mutual funds

Gold exchange-traded funds (ETFs) and mutual funds are a common entry point for many new gold investors, but seasoned investors take advantage of them for the unique benefits they add to their portfolios. A gold ETF is an asset fund that holds gold assets like bullion or gold mining company stocks. Gold mutual funds also own gold assets in their portfolios. 

As Kenny Zhu, an income research analyst at Global X, notes, “Gold ETFs and mutual funds can be attractive options for aspiring gold investors. They offer a level of liquidity and tradeability unmatched by physical gold.” 

As Zhu points out, not all ETFs and mutual funds are the same. 

“While some funds offer exposure to spot gold prices, other funds can introduce leverage in the form of futures contracts or exposure to gold miners. In particular, gold miner [and] explorer ETFs can be attractive investment options for investors, as they provide leveraged exposure to the source of production and can outpace spot prices significantly in performance,” Zhu says.

Open a gold IRA

Gold investors often point to gold’s reputation for hedging against inflation and safety from global turmoil as reasons for investing in the yellow metal. Those benefits can also be beneficial to a long-term investment such as a retirement account. A gold individual retirement account (IRA) can help to diversify your retirement portfolio and grow your money while deferring taxes. These accounts work much like traditional IRAs, but hold physical metal.

Keep in mind, however, gold IRA investors must follow specific IRS regulations and processes to include gold in their accounts.

“Any pre-tax investment is worth checking, so I think it is worth it,” says Luciano Duque, chief investment officer of C3 Bullion. “It can certainly become the gold allocation of a portfolio. What I don’t like is that it’s a bit cumbersome because the investor needs to deal with a gold dealer, a custodian, and a depository. As such, the investor cannot simply buy gold bars and take it to the IRA account—it requires a special procedure.”

Gold IRA companies can guide you through the process, but do your homework to make sure you’re working with a reputable dealer.

The bottom line

Deciding the best gold investment path will likely come down to the benefits you’re seeking. If you’re looking for the security of a tangible asset, gold bullion coins may be an excellent option. On the other hand, you may prefer gold ETFs and mutual funds for easy exposure to gold investments without the need for physical storage. Finally, adding a gold IRA to diversify your retirement portfolio may be a smart gold investment strategy for tax-advantaged growth.