Gold Nears Record Highs: How Investors Can Take Advantage of Rising Prices

This week, the price of gold has surged to around $2,700 per ounce, getting close to its all-time high. Silver is also reaching levels not seen in over a decade. With the U.S. presidential election approaching and the Federal Reserve’s expected interest rate decision on November 7, many people are turning to gold as a safe way to protect their investments during uncertain times.

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Why Gold is Gaining Ground

Analysts at Goldman Sachs are predicting that gold could increase by another 10% by the end of 2025, potentially hitting $3,000 per ounce. This growth is largely due to central banks stockpiling gold, a significant rise in gold-backed ETFs, and investors seeking safe places to put their money. According to Goldman’s Lina Thomas, “Gold demand typically rises during uncertain periods when investors want stability.”

How to Invest in Gold and Silver

For those interested in joining the gold rush, there are several accessible options, from owning physical gold to investing in ETFs and mining stocks.

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Buying Physical Gold and Silver

One of the simplest ways to invest in gold is by buying the physical metal, either as gold bars or coins. According to Alex Ebkarian, co-founder of Allegiance Gold, it’s wise for buyers to consider a long-term approach when purchasing physical gold. However, there are also some costs to keep in mind, like storage fees if you’re storing the gold in a secure facility.

For beginners, a 1 oz. gold bar from well-known brands like PAMP Suisse or Valcambi is often a good start. Gold coins, such as the American Eagle or Canadian Maple Leaf, are also highly popular because they are easy to buy and sell. Expert Scott Travers suggests making sure any coins are certified by recognized agencies to guarantee their value and authenticity.

Investing in Gold and Silver ETFs

ETFs, or exchange-traded funds, offer a more straightforward way to invest in gold without needing to store the metal. ETFs like iShares Silver Trust (SLV) and SPDR Gold Shares (GLD) are tied to the price of silver and gold and have shown solid performance this year. The World Gold Council reported that gold-backed ETFs had their fifth straight month of inflows, showing strong ongoing interest.

While ETFs can be bought and sold easily, Peter C. Earle, an economist with the American Institute for Economic Research, points out that these funds come with management fees and can be affected by overall market changes. “ETFs offer convenience but can fluctuate along with market conditions,” Earle noted.

Gold and Silver Mining Stocks

Another approach is investing in mining companies that produce gold and silver. Mining stocks provide exposure to rising gold prices, but instead of owning gold directly, you own shares in companies that mine it. The VanEck Gold Miners ETF (GDX), which holds various mining companies, has gained more than 30% this year. Individual mining companies like New Gold and Coeur Mining have also experienced strong growth.

It’s important to remember that mining stocks come with specific risks, such as potential operational issues or management challenges that could impact stock performance. Researching companies thoroughly is key for investors considering this option.

What’s Next for Gold and Silver?

With ongoing economic uncertainties, many experts believe gold will remain popular as a safe investment choice. Demand is expected to stay strong as central banks continue to increase their gold reserves and investors seek financial security. The direction of gold prices will likely be influenced by the Federal Reserve’s upcoming decisions and the outcome of the U.S. election, both of which could shape market trends in the near future.

Also Read: Gold Prices Expected to Jump 10% in a Year, Reaching Record Highs