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Here's how gold's price has jumped in the last year (and why you should still invest)

With the price of gold surging, investors may want to consider acting now, before it's too late. Getty Images/iStockphoto

The price of gold broke yet another record this week as it hit $2,439.98 per ounce on May 20. While the price has dropped slightly since, gold has seen overall sustained growth in the opening months of 2024, with no clear limit in sight. This has piqued the interest of prospective investors and given ones already invested in the precious metal ample opportunity to grow their returns.

For beginners still considering gold, however, it helps to know how much the price has risen so far this year — and how much it's grown dating back to May 2023. With these figures known, investors can better determine if gold is worth investing in this May. To that end, below we'll illustrate exactly how much the price has changed, and why a rising price is just one of multiple reasons to invest in the precious metal now.

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Here's how gold's price has jumped in the last year

On May 23, 2023, gold cost $1,975.17 per ounce, according to American Hartford Gold. But on May 23, 2024, the price of the metal was $2,361.66 per ounce – just under a 20% growth rate. That's a tremendous increase for any investment, but particularly one like gold, which isn't typically known for its ability to generate relatively quick profits. Instead, it's often more useful as a hedge against inflation and a reliable portfolio diversifier. Still, if you had bought gold last May and sold it this month, you could have made hundreds of dollars on your investment. 

So you should invest now or has the price growth offset any potential gains? There's a compelling case for acting now. That's because many experts expect the price to continue to rise, and some even argue that it could hit $3,000 an ounce sooner than later. And, at some point, the price will become prohibitive and too costly for beginners to take advantage of. It makes sense, then, to buy in now before the next big price increase. As mentioned, however, today's price isn't the only timely advantage gold can offer. Below, we'll break down two others.

Start investing in gold before the price jumps again.

Why you should invest in gold as the price rises

As appealing as a 20% growth rate can be for any investment, gold has other benefits that can help investors in today's inflationary environment. Here are two major ones:

  • A hedge against inflation: Gold can hold steady and often even increases in value during inflationary periods like we've been experiencing since 2022. And while inflation dropped slightly in April, it's still more than a full percentage point above the Federal Reserve's target 2% goal. It makes sense, then, to add some gold to your portfolio now while inflation is still a concern.
  • A portfolio diversifier: Gold is a smart way to diversify your portfolio to better balance the performance of other, more volatile assets like bonds and stocks. Because of its consistent value, gold can help when other assets underperform, as is possible in today's unpredictable rate climate. Just make sure not to overinvest in this protection, either, as many experts advise limiting gold to a maximum of 10% of your overall portfolio.

The bottom line

Now is an ideal time to invest in gold. Thanks to a rising price, its ability to hedge against today's still problematic inflation and the diversification it can provide to an otherwise stagnant portfolio, many investors would benefit from adding the precious yellow metal right now. But with the potential for the price to continue heading upward, many should consider being aggressive this May before the price — and the benefits gold can provide — grow too far out of reach. 

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