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The remarkable price run gold has experienced over the last year, approximately, has cooled a bit in recent days. Priced at $3,123.44 per ounce at the end of March, the precious metal has since dropped to $3,030.90 per ounce as of April 7. That’s almost a 3% decline in almost a week.
While not a dramatic difference, any change in gold’s price should be viewed strategically, especially by beginners and those who have yet to invest in the precious metal. And that decline could continue in the days and weeks to come, opening a rare opportunity for investors looking to get started with gold without having to pay a record-high price.
Against this backdrop, then, and with the knowledge that gold’s price has largely been on a steady rise since the start of 2024, many investors may be wondering if it’s worth buying in now. Below, we’ll explain why it could be worth doing.
Start by reviewing your top gold investing options here.
Should you buy gold with the price dropping again?
Here are three reasons why it could be worth investing in gold now, even with a moderate drop in prices:
Gold prices tend to rise over time
It’s important to take a step back when considering your investment choices, and that’s especially important to do when considering gold now. Sure, the price has dropped a bit in recent days, and it could decline further still. But, historically, gold prices tend to rise over time, making dips in the cost rare.
By buying in now, not only will investors get in at a more affordable entry price point, but they could soon realize gains that they’d otherwise miss out on if they waited for an ideal, lower price point to take action. With some thinking that gold could soon surpass the $3,500 mark, then buying in now at just over $3,000 per ounce makes sense. And don’t forget that there are multiple ways to invest in gold without having to pay today’s high price.
Get started with gold here now.
You need portfolio diversification right now
Stock market volatility, combined with still prevalent inflation concerns and ongoing issues surrounding an elevated federal funds rate, has left many investors scrambling for a portfolio diversification tool to help offset losses felt in stocks and bonds. Fortunately, gold can provide that security right now, thanks in part to its ability to maintain its value during such economic conditions. All an investor has to do is look at the performance of gold over the last few years, when inflation was prevalent, to see how it performed inversely.
With concerns over the purchasing power of the dollar high now, then, it makes sense to buy into gold today. With the price a bit lower but the portfolio diversification feature still strong, investors could benefit by exploring their gold options promptly.
This could be one of the final times to buy in at this price
If you haven’t yet invested in gold and were hoping to get started at a price closer to the $2,063.73 per ounce it was selling at in early January 2024, you’ll likely be waiting a long time. As noted, gold’s price, minus a few hiccups here and there, tends to only rise in value, meaning that now could be one of the final times to buy in at this price.
If you wait, and any number of economic impactors play out, the price of the metal could surge, perhaps as soon as this week when the new inflation reading for March is released. Should that show an uptick in the rate, the price of gold may not only rise back to where it was, but it could even break a new record. So strongly consider buying in before that scenario becomes a reality.
The bottom line
A drop in gold prices, even a moderate one, offers investors who haven’t yet started with the precious metal an opportunity to get invested at a more cost-effective entry point. That said, gold should still be treated as one important but singular element of an otherwise diversified portfolio made up of stocks, bonds and more. So be sure to keep your gold investment limited to 10% or less of your overall portfolio to avoid crowding out other, income-producing assets at the same time.
Learn more about investing in gold during today’s price dip here.