Gold’s price surged to a record $2,871.74 per ounce, up 40% from its January 2024 start point. With inflation rising and interest rate cuts on hold, investors may be considering investing in gold now. Here are three reasons why it could be worth investing before the price rises again.
Firstly, gold can act as a hedge against inflation. Historically, gold has maintained or risen in value during inflationary periods. If inflation continues to rise, gold’s price is likely to follow suit. Investing in gold now would provide protection against this economic trend.
Secondly, adding gold to your portfolio can provide diversification, especially for those heavily invested in stocks and bonds. Gold can help weather economic volatility and provides a safe haven asset. However, it should be considered now, as the price may become out of reach due to rising domestic economic policies or geopolitical tensions.
Lastly, waiting for the price to drop could be a mistake. The price of gold has already surged 40% in just under a year, and there’s no guarantee it will fall. With inflation concerns on the horizon, the price may rise further if government data confirms rebounding prices. Investing now would secure protection and potentially allow you to buy at a lower price.
Given these factors, many prospective investors should explore their gold investing options now, as the potential for continued upward movement in 2025 is high, and affordable entry points are still available.
Source: https://www.cbsnews.com/news/golds-price-breaks-new-record-reasons-to-invest-before-it-rises-again