The price of gold was seemingly on a never-ending price surge throughout most of 2024. Starting the year priced at just $2,063.73 per ounce, the precious metal soared past the $2,700 mark in late October, with many experts predicting that it could surpass $3,000, perhaps before the end of the year. But that price run came to an end in early November, and gold is now sitting under $2,600 with the possibility of further reductions significant right now.

That said, this lower entry price point offers an opportunity for investors who have yet to add gold to their portfolio. But whether you’re just getting started or already have gold as one element of a diversified portfolio, it’s important to remember a few key points, especially now that the price is declining again. Below, we’ll break down three things investors should remember with gold’s price falling.

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What to remember as gold’s price falls

A cooling gold price could cause investors to readjust their strategy but dramatic adjustments may not be needed if investors remember the following three items:

Price drops are common (and often temporary)

A drop from nearly $2,700 to under $2,600 in less than a month may feel substantial, but it’s important to take a longer view of gold. Gold was priced near $2,600 as recently as September, so the price change isn’t as dramatic as it feels. And, more importantly, price drops in the gold market are common – and often temporary. While dips are inevitable, gold tends to move in one steady upward direction. Understanding this historical dynamic, then, investors may be better served by acting now versus waiting for the price to fall much further.

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Gold is a safe-haven asset

While the price of any asset is important, it’s equally as important to remember the traditional functions of gold in a portfolio and that’s not to produce income as much as it is to be a safe-haven asset to protect other, more volatile assets. Gold is an inflation hedge known for providing a buffer when stocks, bonds and even real estate underperform. And that reputation has not been altered by a mere 5% drop in the price in recent weeks, nor is it likely to be different in the future. 

The price is unlikely to fall back to where it was

While a price drop of a few hundred dollars may tempt prospective investors to wait for a cheaper, more ideal time to buy in, the price is unlikely to fall back to exactly where it was. Inflation rose slightly in October compared to September’s rate. And, as has been seen in recent years, as inflation has risen, interest in the metal has soared and the price has (generally) risen alongside it. Waiting for this drop to bring the price back to early 2024 levels could be a mistake, then, particularly if you can invest now at a better price than what was widely available in recent weeks.

Learn more about where the price of gold could be heading here.

The bottom line

A lower gold price needs to be evaluated for the pros and cons it offers investors, but it shouldn’t be overanalyzed either. After all, price drops for gold are common and often temporary. And those changes are unlikely to diminish the metal’s ability to serve as a safe-haven asset. Still, it’s unlikely that the price will fall back to where it was earlier this year or even in 2023, so investors waiting for that to happen may want to try a different strategy, particularly now before the metal has a chance to rise in price again with inflation ticking back up. Just remember to follow the traditional gold investing limit of 10% of your overall portfolio to avoid overcrowding your other income-producing assets at the same time.

President-elect Donald Trump promised during his campaign he’d shut down the Department of Education, complaining that the agency’s budget is too large and that its staff is filled with “people that in many cases hate our children.” In a September 2023 campaign video he accused schools of “indoctrinating young people with inappropriate racial, sexual and political material.”  

“One thing I’ll be doing very early in the administration is closing up the Department of Education in Washington, D.C., and sending all education and education work it needs back to the states,” Trump said in the video.

Dismantling the department has been an unfulfilled, decades-long goal for some Republicans, dating back to its founding in 1980. It’s the first goal listed in the education section of Project 2025‘s “mandate for leadership,” a book that lays out a plan for Trump’s new administration. Trump has publicly disavowed the project, but its goals — and the people behind it — remain influential in his orbit.

The smallest of all Cabinet agencies, the Department of Education is responsible for distribution of federal financial aid for education, collecting and disseminating data and research related to schools, and prohibiting discrimination in schools. Its funds account for less than 10% of the nation’s public school funding, which is primarily driven by state and local taxes.

Shuttering the agency won’t be easy, according to Michigan State University professor Joshua Cowen.

“This is a real thing. They really want to do this,” said Cowen, a professor of education policy. “It’s more realistic than ever, but I don’t want to overstate the possibility. It’s going to be hard.”

Cowen said even though Republicans control both houses of Congress and the presidency, a wholesale closure of the Department of Education might not be palatable to some of the party’s legislators. 

“They realize some of the things that the education department oversees and funds are popular,” said Cowen, adding that the Senate would need a 60-vote filibuster-proof majority to push through a bill to close the department.

Instead, he said, Republicans are likely to focus on rolling back funding for programs geared toward “equity, inclusion, or programs that could be particularly beneficial toward migrant communities” — lightning rod issues for conservative politicians.

Another target would likely be Title I funding, which provides school districts with funding geared toward low-income students, according to Columbia University professor Aaron Pallas.

“One thing that Project 2025 called for that is perhaps most doable and, and most threatening perhaps to local education agencies is a proposal to phase out federal funding for Title I, shifting that to be the responsibility of states and and local governments,” Pallas said. 

Pallas said that plan also calls for many of the department’s responsibilities to be shifted to other federal agencies.

“It’s really just kind of rearranging in order to continue to provide congressionally mandated services to students. Even if the functions get moved to other agencies, there’s going to have to be people available to administer them,” Pallas said.

Trump also promised in the campaign video to “give all parents the right to choose another school for their children if they want.” But part of the calculus GOP legislators might need to consider is that enthusiasm for dismantling the Education Department may not be as widespread as they think. On Nov. 5, three states — including two where Trump won handily — rejected ballot measures that would’ve shifted money away from public education.

Voters rejected efforts in Kentucky, Colorado and Nebraska to strengthen school choice and voucher programs, in which state funds help foot the bill for parents who choose to forgo their local public schools.

“Rural Republicans have long resisted school choice schemes, especially vouchers, for the simple reason they just don’t have very many private schools in their districts,” said Cowen, whose book “The Privateers” examines the role of wealthy donors in politicians’ push for school voucher programs. 

He said politicians who serve rural school districts might have one other big reason to avoid supporting legislation that strips away funding.

“I’m no Karl Rove or James Carville, but I know that you don’t get reelected by voting against the biggest employer in your district,” Cowan said.