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What to know before investing in gold this fall
In recent years, the allure of gold investing has grown substantially, capturing the attention of both seasoned investors and beginners to the market — and this trend has only accelerated since the start of 2024. While multiple factors have contributed to the recent surge in gold investing popularity, one of the main drivers has been gold’s impressive upward price trajectory.
The price of gold hit its first record high of the year in early March and has continued to climb ever since. Not only has it hit a handful of price milestones over the last few months, but it has also increased by over 22% since January. That type of return would be impressive for any investment vehicle, but it is particularly noteworthy for gold, which is generally a long-term investment.
This substantial price appreciation has rewarded many existing gold investors with big returns on their investments. It has also attracted a new wave of investors who want to capitalize on the precious metal’s price momentum, and you may be one of them. Before you invest in gold this fall, though, there are a few things you should know.
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What to know before investing in gold this fall
Here’s what to consider before diving into the gold market this fall:
The upward price trend could continue
One of the primary considerations is gold’s future price trajectory. While past performance doesn’t guarantee future results, many analysts are bullish on gold’s prospects for the remainder of 2024 and beyond, and several factors contribute to this outlook.
For starters, central banks worldwide have been increasing their gold reserves, as doing so can hedge against economic uncertainty and diversify their holdings away from traditional currencies. Retail investors have also shown increased interest in gold, partly due to its recent price performance and partly as a portfolio diversification strategy. This sustained demand could help maintain upward pressure on prices.
But those aren’t the only drivers. Global economic conditions are uncertain and concerns about geopolitical tensions and other economic hurdles are looming. Because gold can serve as a safe-haven asset during more turbulent economic times, these conditions could potentially drive up demand for gold.
New gold discoveries have also become less frequent and mining operations are facing increasing environmental and regulatory challenges. This supply constraint, coupled with rising demand, could help push gold’s price up even further.
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Physical gold is a good option, but it’s not the only one
While owning physical gold can be a viable investment strategy, it’s not the only way to gain exposure to gold. Take, for example, gold exchange-traded funds (ETFs), which provide an alternative that addresses some of the challenges of physical gold ownership. These funds are easy to buy and sell, much like stocks, and they typically have low transaction costs.
Gold mining stocks could also be an attractive option, as they offer the possibility of dividends and may outperform physical gold in bullish markets. Experienced investors might want to consider gold futures and options, too, as these derivatives offer high leverage potential and can be useful for short-term trading strategies.
Opening a gold individual retirement account (IRA) to prepare for retirement can also make sense. This type of IRA offers similar benefits to a traditional IRA, but it holds physical gold rather than more traditional assets. Gold certificates are yet another option. This type of investment allows you to own gold without the need for physical storage, as they’re backed by allocated gold.
Gold can offer benefits in nearly any economic climate
One of gold’s most attractive features as an investment is its ability to provide benefits to a portfolio across various economic conditions. This versatility stems from gold’s unique characteristics and its historical role in the global financial system. The traditional benefits of gold investing include:
- Inflation hedging: During periods of high inflation, gold often retains its value better than paper currencies, potentially protecting your purchasing power.
- Safe-haven properties: When stock markets are volatile or economic crises loom, investors often flock to gold as a safe-haven asset.
- Portfolio diversification: Gold typically has a low or negative correlation with other major asset classes like stocks and bonds, helping to reduce overall portfolio volatility.
- Currency devaluation protection: If the value of traditional currency declines, gold can act as a store of value, especially if priced in a stronger currency.
- Geopolitical hedging: In times of geopolitical uncertainty or conflict, gold often benefits from its status as a crisis commodity.
- Long-term value preservation: Over very long periods, gold has maintained its purchasing power, making it a potential tool for wealth preservation across generations.
The bottom line
The current gold market presents intriguing opportunities for investors, but you should approach any gold investment you plan to make with a clear understanding of the market dynamics, your available investment options and the role gold can play in your overall financial strategy. By carefully considering these factors and aligning your gold investments with your broader financial goals, you can make more informed decisions about adding gold to your investment portfolio this fall.
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House Ethics Committee planned to vote Friday on whether to release report on Matt Gaetz
The House Ethics Committee, which has been conducting an investigation into sexual misconduct and obstruction allegations against Rep. Matt Gaetz of Florida, scheduled a vote for Friday on whether to release its report, according to three sources with knowledge of the committee’s work.
Hours after President-elect Donald Trump said he planned to nominate Gaetz to be attorney general, Gaetz resigned his congressional seat, effective immediately.
“I do not intend to take the oath of office for the same office in the 119th Congress, to pursue the position of Attorney General in the Trump Administration,” Gaetz said in his resignation letter obtained by CBS News
House Speaker Mike Johnson told reporters that there was about an eight-week period during which Florida Gov. Ron DeSantis could fill his seat by setting the date for a special election.
Now that Gaetz has resigned, it is unclear whether the panel will vote on releasing the report, since Gaetz is no longer in Congress.
There is precedent in Congress on the Senate side for an ethics committee report to become public after a member resigns from Congress, however. In 2011, this happened when Sen. John Ensign of Nevada resigned amid allegations that he tried to hide an extramarital affair.
But it’s not clear that that would apply to the House, leaving open the possibility that the report on Gaetz would not be released.
In June, the House Ethics Committee released a statement saying it was investigating a range of allegations against Gaetz, including sexual misconduct, illicit drug use, and bribery.
Multiple sources at the time told CBS News that four women had informed the House Ethics Committee that they had been paid to go to parties that included sex and drugs, and that Gaetz had also attended. The committee has Gaetz’s Venmo transactions that allegedly show payments for the women.
Gaetz has repeatedly denied wrongdoing and has called the committee’s investigation a “frivolous” smear campaign.
Some of the allegations of sexual misconduct under review by the committee were also the subject of a previous Department of Justice probe into Gaetz. Federal investigators sought to determine if Gaetz violated sex trafficking and obstruction of justice laws, but no charges were filed.
The House Ethics Committee resumed its investigation into Gaetz in 2023, following the Justice Department’s decision not to pursue charges against him.
Gaetz has long blamed then-House Speaker Kevin McCarthy, also a Republican, for the probe. And Gaetz later led the movement to sack McCarthy as speaker.
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