Will gold still be a good investment in 2024?

Following a series of bank failures in the spring of 2023 and against the backdrop of stubbornly high inflation, many investors turned to gold. Known for its ability to hedge against inflation and diversify one’s portfolio, interest in investing in the precious metal spiked in 2023, hitting an 11-year high in September. The price of the shiny metal moved upward alongside that interest, starting in January at $1,836.63 per ounce, according to American Hartford Gold, and ending December at $2,062.90 per ounce.

That all said, the economic environment of 2024 is expected to be a different one. With inflation cooling and the prospect of new rate cuts, many may wonder if gold is still a worthwhile investment. However, there are multiple reasons why investors may still want to turn to gold, even with today’s changing climate.

Will gold still be a good investment in 2024?

Here are three reasons why gold could still be a good investment for you in 2024.

Inflation is still present

Sure, inflation has come down significantly from the 40-year high it hit in June 2022. But it’s still present and above the Federal Reserve’s target goal of 2% (it was 3.1% in the most recent report). And inflation is cyclical so even if it cools down further, it will tick up again eventually, underlining the benefit of adding gold to your portfolio now to cope with that inevitability.

When investing in the metal, however, be sure to limit your investment to 10% or less of your overall portfolio, thus allowing your money to grow in both conservative and more volatile asset classes.

It can (still) diversify your portfolio

It’s never a bad idea to diversify your portfolio. The start of a new year is an opportune time to do just that by investing in gold. That’s because gold tends to hold its value and even increase in value when other assets look shaky (as the above 2023 price range demonstrates).

By putting some of your money into gold, you’ll better prepare yourself for future economic uncertainty. And as the last few years marked by a pandemic and global unrest have shown, there’s no way to tell when these sorts of issues could arise again.

It’s tangible — and varied

Gold is a tangible asset that you can invest in via its physical form, like gold bars and coins (you can even buy it online with a reputable gold dealer or a big retailer like Costco). So if you ultimately decide that a gold investment doesn’t work for your goals, you should be able to easily sell it — or buy more if you want to boost your investments further. And with forms ranging from physical gold to gold IRAs to gold ETFs and gold futures, it won’t be difficult to find the right gold investment for your circumstances.

The bottom line

While 2023 may have been an ideal time to invest in gold, there’s not really a bad time to invest in the precious metal either. And, 2024 is a great time to get started. By investing in gold now, you’ll boost your protections against still present (but cooled) inflation and you’ll diversify your portfolio to better protect against any future economic concerns. And you can do so in a multitude of easy ways, from purchasing gold bars at Costco to investing in gold IRAs for retirement. As is the case with all financial investments, however, be sure to do your research before committing to a gold investment in order to improve your chances of success.