CBS News
These are the 4 best gold investing options this August, experts say
JianGuifang/Getty Images
Investing in gold isn’t a new strategy. These days, however, it’s becoming a more popular choice thanks to the many benefits it offers — from working as a safe-haven asset to helping hedge against inflation.
These perks — coupled with today’s economic factors, like cooling but persistent inflation — might explain why the price of gold has broken numerous price records since the start of 2024. And, gold is still on an upward price trajectory today, making it an even more alluring alternative asset for many investors.
And given the recent rise in gold interest, even more people are looking for ways to buy in. If you’re one of them, there are a few gold options to consider.
Find out more about the gold investing options available to you here.
These are the 4 best gold investing options this August, experts say
If you want to invest in gold this August, here are a few choices experts say you may want to take a look at:
Physical gold bullion
You can’t see your stock market investments in the palm of your hand — or many other types of investments, for that matter. But when you buy physical gold, you get to see and hold your purchase.
“There is only one real way to invest in gold, and that is to buy gold,” says Ryan P. Derda, a vice president at American Independence Gold. “Everything else is a derivative and has counterparty risk.”
Plus, it’s easy for anyone to buy physical gold if they want to add it to their portfolio. It’s not just limited to gold investors, Ben Nadelstein, head of content at Monetary Medals, says.
“Buying physical gold products like coins or bars can be done at a local coin shop, through an online bullion dealer or even retailers like Costco and Walmart,” Nadelstein says. “With how easy and convenient it is to buy gold, you can pick it up fairly easily without weeding through brokerage sites or making online transactions.”
Get started and add gold to your portfolio today.
Gold ETFs
Gold exchange-traded funds (ETFs) can also be a smart option to consider, as they’re a way for many people to get into investing without a lot of risk. That, in turn, can make them a smart bet for a wide range of investors.
“Buying a gold ETF can be a low-cost option to get exposure to gold without needing to research specific mining operations or learning about more complex gold options contracts or futures trading,” Nadelstein says. “Investors can quickly compare different ETF options and are able to easily buy and sell shares of gold ETFs just like they do with other stocks or ETFs they may already own.”
There are typically some fees tied to the cost of investing in gold ETFs, but they are generally less expensive than other investment options with higher expense ratios.
The potential downside, though, is that gold ETFs are a security product; you don’t own the gold.
“You buy a share of a trust that owns the gold,” Derda says. “With an ETF, you don’t own the gold directly. Each ounce of gold is fractionally allocated, and you are not able to take delivery.”
In turn, gold ETFs might be a great way for certain people to start investing in gold. If you want something physical and tangible, though, you may want to stick to physical gold options.
Gold IRAs
For long-term investors, like those saving for retirement, you can leverage an individual retirement account (IRA) to invest in gold. And in some cases, Derda says, it’s better to use what you already have for a gold IRA than search for something new.
“If you have an existing IRA, 401K or annuity inside of your retirement account, I would use those existing funds to purchase gold in a gold IRA,” says Derda. “It’s possible to open a gold IRA and start from scratch. However, I would personally not go about it this way.”
Gold options, futures and bonds
Gold options, futures and bonds may also be worth considering this August, experts say. While other types of gold investing assets offer higher returns, those advanced options may also pose a higher risk for newer investors.
“Gold bonds have been gaining popularity,” Nadelstein says. “Gold bonds can offer double-digit yields paid in gold [but] have credit risk which other gold investing options like gold leases do not.”
“There are other gold derivatives that would certainly be considered ‘more advanced’ and absolutely have more risk, [like] gold options contracts, gold futures contracts and gold options on futures,” Derda says. “These contracts require leverage and carry increased counterparty risk.”
The bottom line
Ultimately, the best way to invest in gold is by buying gold, according to Derda.
“Gold is money, gold has no counterparty risk, and gold is easy to purchase [and] invest in,” Derda says. “Unless you are an experienced trader, I would stay away from using any leveraged derivatives products.”
As you narrow down the investing options, though, just be sure to watch out for fees and extra costs. The less you spend on those extra charges, the more money you keep in your pocket.
“Investors should always be mindful of annual or recurring fees that eat away at the value of their investment,” Nadelstein says. “Investors who want cost-effective exposure to the price of gold as well as the option for a gold income stream are more likely to consider gold leasing or gold bond investing.”
Former President Donald Trump regularly criticizes President Biden and Vice President Kamala Harris over what inflation is costing families, citing one figure in particular.
At a Las Vegas rally on Sept. 13, Trump blamed Harris for causing “the worst inflation in American history, costing us and the typical family $28,000.” He also highlighted the $28,000 figure at recent rallies in Wisconsin, Pennsylvania and Arizona.
Under President Biden, year-over-year inflation — or the pace of price increases — peaked at 9.1% in June 2022, the highest monthly figure in about 40 years, but it has since cooled considerably. In August, inflation hit a three-year low of 2.5%.
Lower inflation means the rate of price increases has slowed, but not that prices themselves have decreased. CBS News’ price tracker shows the cost of everyday household expenses remain higher compared to pre-pandemic levels.
Economists told CBS News that Trump’s $28,000 figure is largely correct. Citing the figure on its own, however, ignores the crucial context that inflation led to income growth, not just price hikes. Data indicates that over the last three and a half years, many Americans have seen a net positive increase in their finances.
Where the $28,000 figure comes from
The estimate that inflation has cost the typical American household $28,000 since Mr. Biden took office is consistent with an inflation tracker from Republicans on Congress’ Joint Economic Committee.
The tracker is based on government data from the Bureau of Economic Analysis of state-level personal consumption expenditures — one measure of spending on goods and services.
The study tracked monthly costs for the average American household in each state since January 2021. From that point through July 2024, the average cumulative increase in household costs among all 50 states and Washington, D.C., was $27,950, due to inflation. In an update for August 2024, the increase rose to around $29,000.
Economists told CBS News the estimate for the total increase in household costs in the last three and a half years is likely in the correct range. Experts generally agree that household costs have increased since January 2021, although the precise number differs depending on the specific metrics used.
Comparing price increases under Trump and Biden
The Republicans on the Joint Economic Committee told CBS News they did not do a similar analysis of how household costs changed under Trump’s administration.
Government data shows prices also grew under Trump, but by much less. The Consumer Price Index for all items increased by around 8% over Trump’s four years in office. By comparison, the total increase in consumer prices thus far under Biden is around 20%.
Of course, the two faced markedly different economic circumstances during their time in the White House.
While Trump’s administration enjoyed low inflation and healthy job growth for much of his time in office, the pandemic leveled the economy toward the end of his term. Early in the Biden administration, inflation reached modern highs as the economy recovered from employment and global supply chain disruptions resulting from the COVID-19 pandemic. Many other countries around the world also saw high inflation due to the pandemic — in some cases far higher than the U.S.
The Federal Reserve believes keeping inflation at a low, stable rate of around 2% year-over-year is best for a well functioning economy where people and businesses can plan financially. It’s typical for prices to grow throughout a presidential term. A reduction in prices, or deflation, is generally not thought of as desirable by economists, and price increases are considered a feature of a healthy economy.
How incomes have fared under Biden
Economists say price increases should be compared to income increases to fully understand how inflation is affecting people’s finances.
Mark Zandi of the independent Moody’s Analytics told CBS News that due to inflation, the median American household spent $905 more in August 2024 to purchase the same goods and services than they did in August 2021. However, the median household made $1,073 more in August 2024 than it did three years ago.
Cumulatively, the Democrats on the Joint Economic Committee told CBS News that their calculations show the average family earned $35,390 in additional wages and salaries between the start of Mr. Biden’s term and July 2024 — a figure that’s more than $7,000 greater than the total increase in household costs over that time period estimated by the committee’s Republicans.
As of last year, Americans’ incomes had rebounded to pre-pandemic levels. According to the most recent data from the U.S. Census, in 2023, median household income rose a healthy 4%, to $80,610, on par with earnings in 2019 on an inflation-adjusted basis.
Another way to measure the financial health of Americans is to look at government data on real disposable personal income, which reflects after-tax income adjusted for inflation. This income figure includes not only wages and salaries but also income from investments and government subsidies.
Disposable personal income has been higher on average during Mr. Biden’s term than it was in December 2020, Trump’s last full month in office. According to Gary Burtless, an economist and senior fellow at the Brookings Institution, real disposable personal income per person has been above $49,407 — where it was in December 2020 — for 30 of the 43 months of Mr. Biden’s term so far.
“Given that Americans’ actual real incomes have increased over the course of the Biden administration, it’s a little hard to see the basis for claiming that ‘inflation under Biden has cost the typical U.S. family $28,000,'” Burtless said.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
