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4 good reasons to buy 1-ounce gold bars in June

Gold ingots on brass scale
If you've been thinking about gold investing, there are a few good reasons you may want to add 1-ounce gold bars to your investment portfolio in June. Getty Images/iStockphoto

In the midst of a turbulent economic landscape characterized by persistent inflation, geopolitical tensions and elevated interest rates, the price of gold has experienced a remarkable surge. While gold's price had been climbing in recent months, the precious metal shattered previous records in late May, when it surpassed the $2,400 per ounce mark, up from just above $2,100 per ounce in late March.

And, while the price of gold has fluctuated in the time since, the recent uptick in gold prices has still helped to attract more new and seasoned investors to the precious metal. But the price surge isn't the only driver in this equation. For example, investors who are seeking to safeguard their wealth and diversify away from volatile assets are also turning to gold in today's economy as a way to add a safe-haven investment to their portfolios.

Given the recent price surge — and the other benefits that can be gleaned from gold investing — you may be wondering whether to follow suit and add gold to your portfolio this June. And while you have numerous ways to do so, many investors will opt for 1-ounce gold bars, which are popular due to their compact and accessible nature. But should you put money into 1-ounce gold bars this June? There are a few reasons you may want to consider it.

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4 good reasons to buy 1-ounce gold bars in June

Here's why you may want to add 1-ounce gold bars to your investment portfolio this June:

It could be an opportune time to buy in at a lower price

Gold prices climbed to a new record high of $2,439.98 per ounce on May 20th. However, this surge has been followed by a pullback, which is presenting an attractive entry point for investors. As of May 30, 2024, the price of gold stands at $2,334.09 per ounce, marking a decline of over $100 from the recent peak. This dip in prices offers a favorable opportunity for those looking to purchase gold at a relatively lower price point

However, it's crucial to recognize that gold prices are inherently volatile and subject to fluctuations driven by a myriad of economic factors, including inflation, interest rates and investor sentiment. While gold has historically demonstrated a tendency to appreciate over the long term, short-term price movements can be unpredictable. So, there's a chance that the current reduced price level may not persist, as gold prices could potentially rebound or even surpass the previous record highs in a matter of days or weeks.

Consequently, investors seeking to capitalize on today's price dip may want to act promptly, as any delay could result in missing out on the chance to acquire gold at a lower price. 

Learn more about the many benefits of gold investing here.

Upcoming Fed decisions could push the price of gold higher

If historical gold price trends are any indicator, the upcoming Federal Reserve meeting, which is scheduled for June 11 to June 12, has the potential to influence gold prices significantly. That's because, with the ongoing uncertainty surrounding interest rates and the Fed's monetary policy decisions, investors will typically preemptively add gold to their portfolios to prepare for any decisions that could affect the economic landscape.

And, if the Fed's decisions or statements suggest a continuation of the current rate environment or indicate further rate hikes, it could potentially drive up the demand for gold even further. So if you invest in 1-ounce gold bars in early June, you may be able to capitalize on any potential price uptick that results from the Fed's June meeting and the subsequent market reactions. 

If you want to try and time it right, though, you'll need to buy in earlier rather than later, as the price of gold tends to climb the closer we get to the Fed's meetings. So if you wait, you could end up paying more than you would by buying in now.

This type of gold bullion is more affordable and accessible overall

Despite the recent surge in gold prices, 1-ounce gold bars are still an accessible and relatively affordable investment option, especially when compared to other gold bullion options. While the current price may seem high, the smaller denomination of 1-ounce bars allows investors to diversify their portfolios without requiring a significant upfront investment.

The physical nature of these gold bars also offers tangible ownership, providing a sense of security and control over one's assets, which can be particularly appealing in times of economic uncertainty or market volatility. 

Storage and custodian costs can also be high when investing in physical gold bars, but 1-ounce gold bars are small and compact enough to be stored by you in a safe or safe deposit box, cutting down on the extra costs.

Investing in 1-ounce gold bars offers other benefits, too

Investing in 1-ounce gold bars offers numerous benefits beyond the affordability and accessibility aspects. For starters, gold has long been recognized as providing a hedge against inflation, and with persistent inflation an ongoing issue, you may want to consider buying in. As a tangible asset with inherent value, gold can also help protect against the risks associated with more volatile assets, like stocks.

Gold bars are also highly liquid and can be easily traded or sold when needed, making them a versatile investment option. Their standardized weight and purity also contribute to the liquidity and ease of valuation.

And, gold is a finite resource with a limited supply, which can further contribute to its long-term value appreciation. So as demand for gold continues to rise, the value of the physical gold investments you make this June may continue to increase over time.

The bottom line

With gold prices experiencing a dip from their recent record highs, June presents an opportune time for investors to consider adding 1-ounce gold bars to their portfolios. And, the upcoming Federal Reserve meeting, along with the uncertain economic landscape, could potentially drive gold prices higher, allowing investors to capitalize on the uptick. In addition, these gold bars offer other benefits, too, including accessibility, affordability and tangible ownership. So by investing in these versatile assets this June, you may be able to protect your wealth and benefit from future upticks in price, should the recent upward trend continue.

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