In 2024, the price of gold has risen dramatically. on January 1, the price of gold was $2,063.73 per ounce, and by July 17, the price had soared to $2,472.46, an increase of nearly 20% in just over six months. The current price of $2,389.99 is still significantly higher than it was at the beginning of the year, a record high. This is a unique time for beginners who are just starting to consider adding this precious metal to their portfolio.

Beginners need to take a careful and strategic approach to investing at this time. This involves avoiding some common mistakes and making smart investment decisions to immediately enjoy the benefits of gold investing while preparing for possible changes in interest rates and inflation. Here are four gold investment moves we’ve put together for beginners to consider when prices are high.

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4 Gold Investing Moves Beginners Should Make with the Price High

As the price of gold continues to rise, here are four moves prospective gold investors should make now:

Buy in now
Today’s high price offers an entry point that is still below the recent peak, providing beginners with a chance to invest at a relatively lower cost. At $2,389.99 per ounce, it may not seem cheap, but many experts predict the price could climb to $3,000 per ounce or higher. By purchasing now, you position yourself for potential growth in the coming months and years.

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Don’t Overinvest

Even with gold prices at record highs or close to them, the conventional wisdom remains unchanged – limit gold investments to 10% or less of your portfolio. For beginners, it’s crucial to resist the urge to allocate too much to this safe haven, potentially neglecting more volatile assets like stocks and bonds. Given a longer investment horizon, adhering to this advice is essential, especially as prices continue to rise.

Understand How Price Affects Asset Types

A rising gold price impacts different gold assets in various ways. Gold bars and coins may not react the same way as gold IRAs and gold ETFs. Gold stocks, on the other hand, could show a distinct response to consistently increasing prices. It’s crucial to first understand how each specific investment type functions. Conduct thorough research to grasp how they respond to price increases, as some may become cost-prohibitive to invest in.

Understand the Purpose of Gold Investing

In 2024, it might be tempting to make a quick profit by buying gold at a low price and selling it at a higher one. While this strategy can benefit some investors, beginners need to recognize the traditional role of gold investing. Gold is not typically used for income generation.

Instead, consider gold as a hedge against inflation, as it tends to maintain or increase in value when inflation erodes the purchasing power of the dollar. Additionally, gold serves as a diversification tool, helping to balance a portfolio that might be too concentrated in one or two asset types. By understanding these features now, even with high prices, beginners can better tailor their gold investments to benefit their overall portfolio.

Key Points

Gold prices continue to hit new highs and beginner investors may want to get in on the action now. When choosing to invest in gold, you need to act aggressively and buy early in anticipation of possible future price increases. At the same time, the amount invested should be moderate so as not to over-concentrate on this asset. The investment process should be done carefully and with a thorough understanding of the impact of rising gold prices on different gold asset types as well as the real purpose of gold investment. By taking these approaches, beginners can improve their chances of success in gold investing during this historic price period as well as in the months and years ahead.