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Known for its ability to protect against inflation and the economic crisis, gold has recently attracted much more attention from investors. The precious metal has broken price records all year, reaching a an all-time high of $2,672 per ounce in September.
With gold price booming, many are wondering if this upward trend will continue. Could gold reach the $3,000 mark by the end of 2024?
We asked financial experts to weigh in on this golden question. Their ideas might surprise you and help shape your investment strategy. As we explore gold’s potential to reach new heights, we’ll also look at smart ways to invest in this precious metal now.
Start exploring your best gold investment options now.
Will the price of gold reach $3,000 in 2024?
Some industry experts say the price of gold could reach $3,000 in 2024, but that this is more likely in early 2025. Below, we explore two scenarios based on their ideas.
Yes, Gold Could Hit $3,000 in 2024
The price of gold per ounce could reach $3,000 in 2024, but certain conditions must align.
Steven Kibbel, certified financial planner and editor-in-chief of InternationalMoneyTransfer.com, points out that gold often thrives during high inflation or economic instability. “Potential interest rate cuts and continued uncertainties in [other countries] could [also] “raise gold prices,” he explains. Lower interest rates make bonds less attractive, potentially increasing the appeal of gold.
However, Kibbel urges caution: “There are no guarantees on this: gold tends to rise when markets are erratic. ” He cites as an example the 2020 pandemic, where many conservative investors increased their gold holdings “because they were concerned about inflation.” If inflation remains low and the U.S. economy continues to grow, the price of gold could stabilize or decline.
Although he believes $3,000 is possible, Kibbel suggests a more realistic goal of up to $2,800 in 2024.
Invest in gold before the price becomes out of reach.
No, gold will not reach $3,000 in 2024
Despite gold’s impressive performance, some experts doubt it will reach $3,000 by the end of 2024.
“Gold prices are unlikely to reach $3,000 by the end of the year. [after already] climbing more than 20%,” says Ed Mahaffy, president and senior portfolio manager at ClientFirst Wealth Management. He expects the current price surge to stabilize, describing a potential “ramp and camp” scenario in which prices are stabilizing within five to seven percent of recent highs.
An optimistic but realistic estimate comes from Ruhee Rathod, director of operations and finance at Bario Neal. “[There’s a strong chance] gold [will hit] $2,850 per ounce in 2024, with the potential to reach the $3,000 mark by early 2025,” she says.
Rathod cites growing interest from investors looking to diversify as key pricing drivers. Although optimistic about gold’s prospects, Rathod thinks $3,000 may be out of reach this year.
Smart Strategies for Investing in Gold Today
Kibbel advises investors to focus on the role of gold in a diversified portfolio rather than wondering if the price of gold will soon exceed $3,000. “Gold has helped protect portfolios during market downturns, even when its price stagnates,” he reminds us. With that in mind, he and Rathod share five effective ways to invest in gold in today’s market:
- Physical gold: Buy gold bars, coins or jewelry for a tangible investment. This practical approach is interesting if you prefer to hold your assets directly.
- ETFs and mutual funds: Invest in gold exchange traded funds or mutual funds for easier, more affordable exposure to gold without buying it by the ounce.
- Futures and mining companies: Consider gold futures or shares of mining companies for indirect exposure to gold price movements, potentially achieving higher returns (but with increased risk).
- Balanced allocation: Aim to invest up to 10% of your portfolio in gold to protect against market volatility and inflation. In times of uncertainty, this percentage could be increased to 15%, but never rely too heavily on a single asset.
- Diversified gold investments: Combine physical gold, gold ETFs and mining actions balancing stability and growth potential while maintaining portfolio flexibility.
The essentials
When investing in gold, consider how it fits into your overall financial strategy. Kibbel advises weighing liquidity and tax implications: “ETFs and mining stocks are much simpler to trade [than physical gold] … [plus, gold is] often more heavily taxed than stocks or bonds. »
Before taking any action, consult a trusted financial advisor and tax professional. They can help you decide how much to invest, which type of gold best suits you and how to balance it with other investments. Start small, perhaps with a gold ETF, and consider a dollar-cost averaging method to spread out your investment over time. Remember, gold is a long term play – not a get-rich-quick plan.
Learn more about your best gold investment options online now.
