Here's how much the price of gold has jumped since January (and why you should invest now)
For centuries, gold has been used as a form of currency and as a safe and effective way to protect your money. What the precious metal has generally not been, however, is an effective income-producing investment. Instead, it's been a safe haven, particularly during times of inflation and economic turmoil, as has been the pattern in recent years.
But the price of gold has surged so far this year, making some investors wonder about the unique income-producing feature of the metal right now. Is it worth investing in to turn a quick profit or are investors better served looking elsewhere? That's what we will break down below, starting with an analysis of the price growth gold has seen so far in 2024.
Learn more about the benefits of investing in gold now here.
Here's how much the price of gold has jumped since January
The price of gold has grown significantly since January 1, breaking numerous price records in the first few months of the year. To start the year, gold was priced at $2,063.73 per ounce, according to American Hartford Gold. That cost has since risen by hundreds of dollars, with the precious metal now priced at $2,355.88 for the same amount of the metal (as of May 14, 2024). That's just over a 14% rise in price. So if you had bought in at that opening price you would have potentially made hundreds (if not thousands) of dollars, depending on the amount you purchased and any markup you paid in the process.
But, if you didn't buy low, you may still have an opportunity to get in and turn a rare profit. Because gold is known for its ability to hedge inflation (thanks to a steady price when other assets falter) and because inflation is still problematic (the next inflation report will be released on Wednesday), the demand for the metal is likely to remain strong — and the corresponding price will be competitive. Because of the timely benefits of gold investing, however, it may not make sense to delay, either. Instead, start exploring your top gold options now to learn more.
Why you should invest in gold now
While the ability to turn a quick profit with gold is enticing, particularly for beginners, it's not the only advantage the yellow metal offers investors. Here are two others to understand:
- A hedge against inflation: As noted, gold tends to perform strongly when inflation is problematic. That's due to its price resilience during these economic periods. The price of gold has risen after inflation reports were released in each of the first four months of 2024. And with the next inflation report scheduled to be released May 15, it would behoove investors to get started now before the price potentially becomes prohibitive.
- A portfolio diversifier: Because gold tends to perform differently than traditional assets do, it's considered a great way to diversify your portfolio. When added to a well-rounded portfolio, gold can help buffer against negative consequences felt elsewhere. To improve the effectiveness of gold as a diversifier, however, experts recommend limiting it to 10% or less of your overall portfolio.
The bottom line
With a growing price and the benefit of some protection against inflation, now is a great time to invest in gold. By acting now, investors could potentially turn a quick profit (a rarity in the gold investing market) and they can do so by effectively diversifying their portfolio at the same time. That noted, gold investing isn't right for everyone, so it's important to carefully consider the pros and cons of this unique asset before getting started.
