As of 6:00 a.m. on October 20, the world gold price listed on Kitco was at 2,721.9 USD/ounce, a new record price that appeared just a few weeks after gold reached its previous record of about 2,600 USD.
It’s worth noting that gold prices started 2024 at just $2,063.73 an ounce, meaning they’ve risen 32% in less than a year. And there’s no sign of prices cooling down. Many experts now predict gold will surge past $3,000, perhaps as early as this year.
In this context, potential investors may want to start buying now, before gold prices get out of hand, according to expert Matt Richardson, editor of the "Manage Your Money" column on CBSNews.com.
Richardson outlines three important reasons why you should consider investing in gold now.
Can make money quickly
While gold is considered a more conventional, long-term investment, the price rise it has experienced this year is not entirely conventional.
Depending on when they invested this year (and for how much), current investors could have made hundreds or even thousands of dollars from gold.
With the current upward trajectory, new investors are likely to make similar, quick profits, but will need to buy now to be able to sell at a higher price, according to Richardson.
Gold prices may soon get too high
$2,700 is not cheap for an ounce of gold, especially when compared to its price a year ago.
Waiting for gold prices to fall comes with many risks, the most obvious of which is that there is no guarantee that prices will actually fall. And with factors such as inflation, economic uncertainty and geopolitical tensions — all of which have boosted gold prices — still worrisome to this day, waiting could be the wrong move.
Competition will increase - and you'll miss out on the benefits of gold
In addition to rising gold prices, competition for buyers is also increasing. Major retailers have sold out of gold bars several times, most recently this fall. So if you wait to buy physical gold, you may have a harder time getting it than you would in a different economic climate.
And missing out on the metal also means missing out on the benefits it can provide, such as an inflation hedge and portfolio diversification when other assets underperform.
Bottom line
With gold prices soaring with no end in sight, potential investors should consider jumping in now, Richardson said, as they could make a rare profit selling what is often considered a long-term investment.
By acting now, they will also avoid any future price increases and increased competition among buyers.
However, it is important for investors to keep gold as part of a diversified portfolio, even if the forecast for gold prices seems never-ending. Most experts recommend limiting gold to 10% or less of a portfolio.
