With investors turning to gold to hedge against inflation the price of the precious metal could soon rise again.
Inflation has been high for quite some time. While the Federal Reserve has been actively trying to tame it, many consumers still feel the burn — struggling with higher prices, higher interest rates and more.
This has led to increased interest in gold investments, as many consider it a smart hedge against inflation and a good way to safeguard wealth in troubling economic times.
Is it, though? That depends on where the price of gold goes — both now and in the future. Are you thinking of investing in gold? Then it helps to know what some experts expect for gold prices moving forward.
Where gold prices stand today
Gold prices are significantly higher than they were just a few years ago, rising from about $1,200 per ounce in October 2018 to the $1,874 per ounce they are today.
“Had you invested in gold in 2018, you would have been up more than 50%,” says Collin Plume, “That means if you invested $50,000 in gold five years ago, you would be sitting on $75,000 now.”
Still, gold prices have come down slightly since their 2023 peak (over $2,000 per ounce in April). According to Alex Ebkarian, this dip is due to “increased bond yields and a stronger dollar” and is likely not a trend that will continue.
Gold prices in 2023 and 2024
Other experts share Ebkarian’s sentiments. As Sean Casterline puts it, “Many analysts feel as though the last couple of years have been a consolidation before another move higher. Gold typically does well in an inflationary and/or troubled economy. This describes our current economy to a tee and may be the catalyst for another move higher.”
Just how high could gold prices go, though? Ebkarian says a lot of factors will play a role, including inflation, Federal Reserve moves, the geopolitical climate and even the upcoming US presidential election.
“In the runup to the 2024 election, if it’s viewed that the elected administration intends to implement expansive fiscal policies — increased government spending, tax cuts, etc. — it could lead to more inflationary pressure,” Ebkarian says. “This could boost the demand for gold as a hedge against inflation.”
Government and industrial demand for gold will also factor into where prices head, but overall, experts say prices are likely going to rise in 2024 — and then hold steady from there.
“We will most likely see gold cross the $2,000 mark by 2024 and settle there at its support level,” Plume says. “It will also break it’s all-time high of $2,074 and most likely push beyond $2,100.”
Is now a good time to buy gold?
Whether it’s a good time to buy gold depends on your personal situation and goals, but generally speaking, pros say yes.
“Now is an opportune time to invest in gold because the precious metal has historically risen in value over time and is viewed as a safe-haven asset that protects wealth amid geopolitical instability,” Ebkarian says. “It also helps investors weather inflation and high interest rates.”
Remember, though — despite gold’s recent upticks in price, it’s not typically considered a source for big returns or as a good short-term investment.
“While every investor wants to be able to time the market and buy low and sell high, because physical gold is a mid-to long-term asset, it’s best to ‘buy and wait’ as opposed to ‘wait and buy,'” Ebkarian says. “Unlike the dollar, gold cannot be printed overnight, and it is finite in supply.”
If you do opt to invest in gold, experts recommend devoting no more than 10% of your portfolio to it. This ensures you have a diversified portfolio that can weather a variety of potential storms.
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