Gold’s price breaks record $3,000 per ounce: Everything to know now
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The moment gold investors had long anticipated and many experts had long predicted finally arrived on March 14, when the price of gold broke a landmark price record of $3,000 per ounce. Officially at $3,001.08 as of Friday morning, according to American Hartford Gold, the record price is the latest in a series of highs the precious metal has seen over the past 14 months. And there are strong indications that the price will rise even higher. Priced at just $2,063.73 in January 2024, the metal has gained around $1,000 in price and risen 45% in value, making it one of the hottest assets to invest in right now.
That said, while the new record price may be the headline news, there’s a lot to consider about a gold investment now, whether you’re a beginner new to precious metals or a veteran considering adding a layer of gold protection to your portfolio. Below, we’ll break down everything to know now that gold’s hit the landmark $3,000 price per ounce.
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Everything to know about gold investing now
Investors waking up to gold’s new price record may have multiple questions now. Here are the answers:
Why does gold’s price keep rising?
Consider the price surge the result of a perfect storm made up of inflation, interest rate policy, geopolitical tensions abroad and domestic concerns over the economy here in the United States. Add all of these elements together, some of which can be stronger than others during certain periods, and it results not only in the price of gold consistently rising but also breaking numerous price records in the interim. Long considered a safe-haven asset for its ability to withstand market volatility, it’s not surprising that gold broke the $3,000 mark this March, considering recent stock market highs and lows (even though the latest inflation reading was a positive one).
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Will gold’s price keep increasing?
Predicting the future price of any asset is impossible to do with precision, but probably. Unless market conditions dramatically change, geopolitical tensions significantly cool or stock market performance starts consistently improving, gold’s price is likely to reflect these concerns by continuing its upward trend. That said, multiple factors drive gold’s price, and if there’s progress with any of the aforementioned elements, the price could level off (although once the price of gold rises, historically, it doesn’t tend to fall very much). So don’t be surprised to see gold head toward $3,500 per ounce in the months to come.
Why should you invest in gold now?
Even with the price surge, the supporting reasons behind a gold investment remain unchanged. If you want a hedge against inflation, gold can provide it thanks to its historic ability to remain steady in value even when inflation hurts the dollar’s purchasing power (and inflation is cyclical, so it makes sense to invest now even if the rate is coming down again). Similarly, if you need a portfolio diversification tool to help break up investments otherwise too heavily involved with stocks and bonds, gold can help. And, remarkably, despite its reputation as an income protector versus producer, during this recent price surge, some may even find it advantageous to turn to gold to earn a quick profit.
How much should you invest in gold?
This recommendation remains the same until further notice: No more than 10% of your overall portfolio. For seniors and older investors with limited investing opportunities and a greater need for liquidity, that threshold could be even lower. But it’s important to remember that gold is still a better portfolio protector than a conventional portfolio builder. So keep your stocks, bonds and real estate investments strong, just consider adding a layer of gold to help offset any volatility felt with those three.
How do you invest in gold with the price high?
An asset worth $3,000 per ounce may be cost prohibitive for many investors and understandably so. But that doesn’t mean you should avoid investing in the precious metal. It will just require a more nuanced approach. Fractional gold investments, for example, come in amounts smaller than an ounce â but they’re still subject to market conditions. So, theoretically, you could buy in at a lower cost and still enjoy the price surge the metal has experienced overall. With options ranging from gold IRAs to gold ETFs to gold stocks and more, there’s likely a cost-effective way for you to invest in gold now, even with the price continuing to surge.
The bottom line
Gold investing entered a new and exciting territory on Friday when it broke the $3,000 price record. Where it ultimately goes from here remains to be seen. What’s still true, however, is that gold is reliable hedge against inflation, portfolio diversifier and overall smart way to protect your investments during turbulent times. So, if you haven’t yet invested in the yellow metal, now be the time to get started.
Learn more about your gold investment options here.
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