The price of gold today at 9 a.m. Eastern Time was $2,491.27 per ounce. That is a +1.65% change from the same time yesterday and +31.87% change from last year.
| Gold price per ounce | % Change | |
|---|---|---|
| Gold price yesterday | $2,450.95 | +1.65% |
| Gold price 1 month ago | $2,438.13 | +2.18% |
| Gold price 1 year ago | $1,889.23 | +31.87% |
| Gold price yesterday | |
|---|---|
| $2,450.95 | |
| +1.65% | |
| Gold price 1 month ago | |
| $2,438.13 | |
| +2.18% | |
| Gold price 1 year ago | |
| $1,889.23 | |
| +31.87% |
Gold is an asset that many like to own as a hedge against inflation. Rising prices tend to erode the purchasing power of a currency like the U.S. dollar, while gold generally increases in value over the long term. Owning gold—in the form of a gold IRA, for example—can help investors preserve the value of their portfolios and build wealth, as well as hedge against volatile markets.
“Gold has intrinsic value and retains its value over time, making it a stable store of value in times of economic uncertainty,” says Dennis Shirshikov, a finance professor at the City University of New York. Gold can also be a good investment because of its liquidity, according to Shirshikov, as the asset “can be easily bought and sold on the market.”
Historical gold price
Gold is a popular investment asset for protection against inflation. When prices of goods rise, the purchasing power of the U.S. dollar and other currencies often decreases. In these cases, the value of gold typically increases over time. By investing in gold, individuals can preserve the value of their portfolios, grow their wealth, and hedge against market fluctuations.
Over the long term, gold has a significantly lower average annual return than stocks. From 1971 to 2024, the stock market delivered average annual returns of 10.7%. Gold delivered an average annual return of 7.9% over the same period.
What does “spot gold” mean?
The spot price of gold represents the immediate price for buying or selling gold in an over-the-counter transaction. By monitoring the spot price, investors can gain insight into investment trends and demand for gold. A higher spot price indicates increased demand. Unlike futures contracts, which are agreements for future transactions, the spot price refers to immediate sales.
The spot price can be either above or below the futures price. If it is below, this is known as contango, which often occurs with commodities with high storage costs. If, on the other hand, the spot price is above the futures price, this is known as backwardation. Analysts assume that market prices will eventually converge with the futures prices.
Various factors, including supply and demand, influence the spot price and cause constant fluctuations. Investors should be prepared for ongoing price changes when investing in gold.
What is the price range in gold trading?
The price spread refers to the difference between the purchase price and the selling price of an asset.
It’s the same with gold: the offer price or ask price is the amount required to buy gold and represents the cost of the investment. The bid price is the amount you can get when you sell the gold. Bid prices are consistently lower than ask prices.
A narrower spread indicates a more liquid market. Smaller spreads should reassure investors as they signal increasing demand for gold.
How to invest in gold
According to fee-based financial advisor James Taska, gold can be purchased as a physical asset or as a securitized product. “There is a big debate about whether paper gold is as useful as physical,” he says. “From a financial advisor’s perspective, it is much easier to rebalance a client’s gold allocation when it is held as an exchange-traded fund (ETF), and the spread when trying to buy/sell gold can be very variable and large.”
There are many ways to buy gold. You can choose to set up a gold IRA. Here’s how you can invest in gold:
- Gold bars: Also known as gold bullion, this option is chosen by many investors when investing in gold. You can buy it by the gram or ounce, and the purity, weight and manufacturer should be stamped on the front of the bar.
- Gold coins: These are collector coins, such as the American Gold Eagle coin. Because they are collectibles, they can be purchased at a premium beyond the weight of the gold.
- Gold jewelry: Since people also buy jewelry for its aesthetic value, the price can be significantly higher than the value of the gold weight.
- Gold futures contracts: A futures contract states that the investor will buy a certain amount of gold at a certain price at a later date. With futures contracts, investors can speculate on the future price of gold without owning the actual physical product.
- Gold funds: These are mutual funds or ETFs that own gold assets. You can buy shares in gold funds or other mutual funds, and their value fluctuates based on changes in the underlying portfolio of assets.
Is it a good time to invest in gold?
According to Taska, a “gold allocation should really be considered on a case-by-case basis.” However, Shirshikov points out that “diversifying a portfolio with gold can reduce overall risk and volatility.”
Since we live in inflationary times, many investors want to diversify their portfolios with gold. Many find that gold offers stability during a very volatile time in the stock market. Prices have risen to all-time highs since inflation rose in recent years, and JP Morgan expects prices to continue to rise to an average of $2,500 per ounce by the end of 2024. Many experts agree that this is a good time to diversify your portfolio with gold.
Current precious metal prices As of today at 9 a.m. ET
| Precious metal | Price per ounce |
|---|---|
| Gold | $2,491.27 |
| Silver | $28.38 |
| platinum | $953.81 |
| palladium | $939.50 |
| Gold | |
|---|---|
| $2,491.27 | |
| Silver | |
| $28.38 | |
| platinum | |
| $953.81 | |
| palladium | |
| $939.50 |
In addition to gold, silver, platinum and palladium are popular precious metals that investors hold in their portfolios. In terms of volatility, gold is less volatile than silver. The price of silver can fluctuate widely on any given day. However, silver is more sensitive to economic changes due to its widespread use in many industries.
Platinum and palladium are also widely used in industry. Investing in these rare metals is another way to diversify a portfolio, although these metals are highly volatile. This can provide investors with the opportunity to profit from speculative gains.
The conclusion
The U.S. economy has been in turmoil for several years and inflation has affected all households. Investors can use gold as an inflation hedge in their portfolios. There are many ways to buy gold, making it an easily accumulative asset that can be built up depending on the investor’s comfort level and interest. You can buy gold in an IRA or non-retirement account, which fits both short-term and long-term investment goals.
Frequently Asked Questions
What is the best way to own gold?
More and more investors are buying gold through ETFs, which allows for a managed portfolio of easily tradable assets.
Is gold a good investment?
Gold is a good investment for investors who want to diversify their portfolio and hedge against inflation. There are many ways to buy gold, making this investment easy to access.
Should I buy gold coins or gold bars?
Gold coins are considered collectibles and can be worth more than bullion relative to their gold weight. Collector value and historical significance can make coins a more attractive asset for some investors.
