3 reasons to invest in gold this holiday season
It's been quite the year for gold. The price of the precious metal started 2024 at just over $2,000 an ounce, but gold prices quickly climbed higher — breaking records as the price surpassed $2,400, $2,500, $2,600, and then, in mid-October, $2,700 per ounce.
The price has moderated a bit in the time since, falling back below $2,700 per ounce, but remains high overall. And there are plenty of reasons behind the recent run-up, with geopolitical tensions and high inflation driving consumers to safe-haven assets chief among them. Quickly rising prices have also enticed investors looking for solid returns.
Are you one of the many who have invested in gold this year? If not, there's still time — and good reason — to do so.
Learn how to get started with gold investing today.
3 reasons to invest in gold this holiday season
Here's why experts say you may want to buy some this holiday season.
It protects against future inflation and recessions
According to Eric Elkins, CEO of financial consulting firm Double E, you should consider investing in gold in a recession — or even if one is just expected.
"If you believe today or in the future, we are nearing a recession or depression then consider gold as a possible option to plant your money," Elkins recently told CBS News. "Gold historically has done very well when the U.S. had economic turmoil."
J.P. Morgan currently estimates there's a 45% chance of a recession by the end of 2025. And the worse that recession is, "the better gold will do," says Michael Chadwick, president of Fiscal Wisdom Wealth Management.
"Buying gold pre-recession is very smart," Chadwick says.
Find out more about the benefits of gold investing here.
It can diversify your portfolio
You may have heard the old adage about putting all your eggs in one basket. Well, the same is true in the investment space. Putting the majority of your money into one asset class is dangerous. If you do that, all it takes is one market downturn for your portfolio to drop a significant amount.
A better approach is to diversify your portfolio with a variety of assets so that when one falls, you have other, still-performing investments to balance it out. Gold is "the asset" when it comes to true portfolio diversification, according to James Cordier, head trader at Alternative Options.
"It adds exposure and diversification to an asset that is not directly correlated to the stock market," says Christopher Mediate, president of Mediate Financial. "It can be a great hedge against volatility."
Waiting may cost you more
If investing in some for its safe-haven or diversification benefits is on your agenda, buying sooner rather than later might be wise.
While the future trajectory of gold prices is hard to pin down, some experts predict gold prices could surpass $3,000 per ounce in the coming months. So the investors who wait to buy in? They risk being "priced out," says Keith Weiner, CEO and founder of Monetary Metals.
"If you choose to wait for a price drop, you might wait a long time and not get it," Weiner says.
The bottom line
If you're ready to invest in gold this holiday season, there are lots of ways to do it. You can buy gold bars and coins if you want to own physical gold, purchase gold stocks and ETFs, or open a gold IRA, which offers a tax-advantaged way to invest in gold and save for retirement.
Talk to an investment professional or financial planner if you're not sure of the best way to invest in gold for your goals and budget.
