How Safe Is A Gold Investment In 2024?

The past few years have been marked by high inflation and unstable markets. As we go into an election year – which is an economic environment known to be notoriously volatile – it's important to once again revisit what type of investments are relatively safe from market turbulence. Historically, commodities and metals have always been investors’ preferred stores of value because they help hedge against inflation. But the question remains: as the world becomes more digitized and currencies like Bitcoin take off, are commodities like gold still a worthwhile investment?

According to many respected experts, the answer is yes. Gold has consistently proven itself a reliable investment option, especially during uncertain times. One such example was seen in 2020 when the global pandemic led to market pessimism and caused the price of gold to reach a historic high of $2,074 per ounce. Similarly, in 2022, Russia's invasion of Ukraine in late February drove the yellow metal's value above $2,000 once again.

Following the pandemic, the gold market narrative has primarily revolved around two contrasting factors: persistently high inflation and the actions of central banks, with particular emphasis on the U.S. Federal Reserve. Central banks, like the Fed, have been raising interest rates in response to soaring consumer prices. While no investment is truly safe, this dynamic has further solidified gold's reputation as a safer investment choice for those seeking stability in uncertain economic environments. Gold has historically been considered a hedge against inflation, as it tends to retain its value or even appreciate during periods of rising prices.

Analysts at UK-based Standard Chartered shared that they expect “to see gold as a core holding and a key portfolio diversifier… we expect the physical market to pick up the baton from here as we enter the seasonally strong period for consumption. The recent escalation of the Russia-Ukraine conflict is one example of a geo-political factor likely to drive safe-haven flows to gold. On a 12-month horizon, we believe gold will move higher as bond yields moderate and the USD rolls over.”

When considering investing in physical precious metals, investors typically go one of two routes: investing in a Gold IRA or investing in physical gold and silver bars and coins. A Gold IRA is a type of self-directed retirement account where the holder invests in physical gold instead of conventional assets such as stocks, bonds or mutual funds. It is becoming increasingly popular as a method to prepare for retirement and help protect savings. If you are seeking additional information or ready to get started, here’s what you can do: 

You can rollover an existing account or open a Gold IRA account with Preserve Gold, a leading U.S.-based precious metals firm. They have 0 BBB complaints – which would seem to be notable by industry standards – and excellent reviews. The company specializes in helping individuals and families diversify and protect their wealth through tangible precious metals. 

Preserve Gold distinguishes itself through its focus on three core principles: integrity, transparency and consistency. These principles serve as the company’s foundation for long-lasting customer relationships and reinforce the company's commitment to providing trustworthy and reliable services. To ensure a smooth and secure purchasing process, Preserve Gold offers an informed and easy way to acquire precious metals. The company's knowledgeable team assists clients in making educated purchasing decisions while prioritizing security and ease of transaction.

If you’re someone who is considering investing in gold, adding a Gold IRA to your retirement portfolio can prove to be a valuable asset. It presents a range of advantages that not only help to keep your savings afloat but could also contribute to its growth in the long run. When deciding to invest in a Gold IRA, having a trusted partner like Preserve Gold can be key to achieving your financial goals.

Featured photo by Scottsdale Mint on Unsplash.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.