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Gold prices hit a new high: Should you buy in now?

Don't let gold's record-high price deter you from making a wise investment decision now. Getty Images

Gold has been a hot topic among investors recently, which is due, in large part, to the price of gold climbing steadily over the last several weeks. And, on April 1, 2024, the price of gold hit a new record high, reaching $2,259.29 per ounce for the first time. 

But while gold can be a smart asset to buy into given the unique benefits it offers to investors, does it make sense to buy in now that prices are at a new record high? Or is it better to wait and see if the price of gold drops over time?

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Gold prices hit a new high: Should you buy in now?

There are a few big reasons it makes sense to invest in gold right now, including: 

Demand is up

Gold is a finite resource. In turn, the price of gold is driven, in large part, by supply and demand. When demand for the commodity is up, gold's price tends to head up as well — and vice versa. So, with gold's price hitting a record high today, it appears that demand for the commodity is growing. 

That's good news if you're a gold investor. After all, if demand continues to increase, the price of gold could continue to climb upward in the future. And if you buy in now, you could capitalize on any future price increases caused by the growing demand for gold. 

Learn more about adding gold to your portfolio today

Inflation remains persistent

"Gold has been a long term investment strategy for millions of people," says Michael Broughton, founder and CEO of ALTRO money app. And, it "has always been a tool to counter inflation." 

That's an important characteristic to consider in today's economic environment. After all, while inflation has fallen quite a bit from post-pandemic highs, prices are still growing too quickly for comfort. In February, prices were up 3.2% year over year

In turn, it makes sense to take steps to protect your money from losses due to inflation, and adding gold to your portfolio is one asset that can do that. And, as inflation continues to drive prices higher, gold's inverse relationship to inflation means today's inflationary climate could help it grow in value as well. 

So by buying in now, you could help inflation-proof your portfolio while potentially reaping future returns. 

Economic uncertainty continues

Gold isn't just an inflation hedge. It's also a safe-haven investment. That means it's an effective way to protect the value of your wealth during periods of economic uncertainty, market fluctuations or geopolitical turmoil. 

And, right now, the high-rate environment that is meant to help temper inflation, coupled with other issues, like geopolitical strife in certain areas of the globe, is creating an uncertain economic climate. So, it can make sense to add gold to your portfolio now to protect your wealth from the negative impacts that may occur as a result. 

The bottom line

The price of gold may be at a record high right now, but it can still make sense to buy in. After all, gold's inflation-hedging and safe-haven properties make it a smart bet for most investors, and today's unusual economic climate makes it a wise choice. And, the uptick in demand by investors also signals that gold investing could be a smart move, as buying in now could allow you to reap the returns from future price gains caused by sustained demand, should they happen.

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