Is investing in gold still worthwhile in 2024?

Elizabeth Smith

We know it well, the international economic crisis does not seem to be easing. Fewer and fewer people are able to save a few euros and many prefer to keep these sums immobile in their current accounts.

Gold has always been considered a safe haven asset and even today many investors choose it to protect themselves from risk. Its history as a store of value is certainly not so recent, already thousands of years ago, when it was used as a form of payment and commercial exchange.

Today the reasons for choosing to buy gold have certainly changed, but what it represents in terms of security and stability has not changed.

Is investing in gold still worthwhile in 2024?

In 2024, buying gold means making a very important strategic choice. In periods of strong economic uncertainty and instability, many take refuge in purchasing this good because it represents a beacon of security and stability against inflation and market fluctuations.

Compared to the many alternatives, gold stands out as a tangible resource, capable of preserving value over time. Therefore investing in gold today in 2024 represents a very wise and prudent move.

It already was during the financial crisis of 2011 but also in the recent pandemic, many were those who purchased it. Thus making it increasingly become a low-risk security asset and an effective means of protecting assets.

Gold has an actual value, since its quantity is finite and measurable and investing in gold in 2024 means betting on the rise or fall of its price.

How to invest in gold

Gold has been chosen as a stable and safe investment for thousands of years, especially in periods of economic uncertainty and market instability. But don’t think that investing in gold only means buying physical bullion. There are in fact several options available to investors for investing in gold.

The first is certainly the purchase of physical gold, i.e. gold bars or coins. This can be stored at home or at a bank, but of course there are costs involved such as storage and insurance costs.

Another method of purchase is that mutual investment funds in gold allow. These allow investors to purchase shares of a fund that invests in physical gold or gold producers, such as mining companies.

And then there are ETFs, i.e. Exchange Traded Funds. Which are similar to mutual funds, but are traded like shares on the stock market.

While futures contracts allow investors to buy or sell gold in the future at a set price. This type of investment involves a high risk of loss. To make a correct choice it is necessary to consider the risks and opportunities of each option, and take into account your risk profile and set objectives.

When is the right time to buy gold?

Now is the right time to buy gold, because its price tends to increase when other types of investments, such as stocks, decline.

Companies but also large investors tend to invest in gold to correct losses resulting from other bad investment solutions and therefore this contributes to increasing its value. Investing in gold today means looking to the future because it is a long-term investment.

Buying small ingots today even with small sums is an excellent method to avoid significantly affecting your portfolio and aim for a strong capital that increases over time. Therefore investing in gold represents an effective diversification strategy.

Read also: Which gold costs the most? How to identify the precious metal with the highest value

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