Gold prices have been in record territory this week, hitting $2,706 on the futures market. But how much is there left of this rally? It depends on who you ask
Analysts’ recent predictions have reflected both optimism and caution. Some predict that gold could reach a record $3,000 per ounce by the end of this year, driven by factors like lowered interest rates from the Federal Reserve and increased investor attraction to safe havens during geopolitical turmoi
Investment bank Goldman Sachs raised its price forecast to $2,900 per ounce, citing increased institutional purchases, especially by central banks. GoldPrice.org says that there has been a nearly 46% increase in gold prices in the last 12 months, with a 6.58% increase in the last 30 days
Other analysts have a lower calculation, saying the value of gold has increased by over 30% in 2024. In either estimate, it has outperformed the S&P 500’s 22% gain.
However, some analysts see the possibility of a correction in the days ahead. Still, the bulls continue to outnumber the bears when it comes to this precious metal.
Interest in owning gold led Costco to begin selling one-ounce bars online. The company started gold sales just over a year ago and reports demand is strong. It recently added platinum bars, which sell at the market price.
Before you invest
There are a number of ways to own gold. Most of the commercials for gold you see are pushing physical gold. Physical gold must have a secure place for storage and is not overly liquid.
But you can also buy gold exchange-traded funds (ETF) that invest in physical gold and are bought and sold like stocks, making that gold much more liquid.
However you consider purchasing gold, you should be mindful of the risks. Prices can move quickly, up or down, depending on supply and demand. Investors should also be alert to claims that purchasers can make a lot of money in these or any investment with little risk.
As with any investment, you can lose money, and as they say in the investment game, past performance is not a guarantee of future performance results. Consumers should also clearly understand the fees associated with any investment before agreeing to invest.