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The price of gold is coming down again. Seemingly on a never-ending record-breaking path throughout all of 2024, the price of the precious metal has declined in recent days. After hitting a new high of $2,776.10 per ounce on October 29, the price has since declined by almost 6% to $2,611.53 as of November 12. And that cost could continue to decline as additional economic factors come into consideration.
While a declining asset price, on the surface, may dissuade investors from getting started with gold now, upon closer examination this new price point provides an appealing entry point. But investors, whether veterans or beginners just considering gold now, will need to take a smart and strategic approach to capitalize on this price drop. Below, we’ll break down three ways to take advantage of gold right now.
Start by exploring your top gold investment options here.
How to take advantage of gold’s declining price
Ready to buy into gold now? Here are three possible ways investors can take advantage of gold’s declining price.
Explore your different options
Gold doesn’t just come in the form of bars and coins. There are also gold IRAs, gold ETFs, gold futures and gold stocks. Each has its own set of pros and cons and each will respond differently to a declining price. But you won’t know which offers the best deal right now until you’ve done some preliminary research on all of these types.
Additionally, some of these require more advanced knowledge of the gold investing landscape than others – and will mandate more work to benefit from a price drop. So start your gold investing journey by exploring all of these types now to better improve your chances of success.
Learn more about gold IRAs online now.
Invest more than you may have planned to
A price point hovering close to $3,000 per ounce may have understandably discouraged an expansive investment. But now, with gold dropping, you have an opportunity to get in at a cheaper price point. This may mean investing more than you may have planned to if you had got started with gold earlier this fall.
Fractional gold, for example, may have been the only way you could have afforded to add gold to your portfolio previously this year. Now, however, you may be able to invest in a bit more. Just remember to limit your gold to no more than 10% of your overall portfolio to avoid crowding out other, income-producing assets like stocks and bonds.
Remember what gold can (and can’t) do
A declining gold price could cloud investors’ judgment, particularly after the record run the metal has been on all year. To take advantage of gold now, however, it’s critical to remember what gold can (and can’t) do for your portfolio. It can diversify it and help hedge against inflation – both now and in the future.
It can’t, however, be relied upon as a steady income producer, notwithstanding this year’s record price surge. And it can’t be the only way you invest, either. Instead, it should be one significant component of a wider, diversified portfolio – even as the price continues to decline.
The bottom line
A falling gold price offers investors a reprieve from a record-price run. To take advantage of this likely momentary price decline, however, gold investors should begin by exploring all of their potential gold options now to better determine which one is right for them. They may also benefit by investing in a larger amount now versus what they may have pursued earlier this year during the price rise and they should always keep in mind what gold can and can’t realistically do for their portfolio. By understanding these three factors now, both beginners and savvy investors can position themselves for long-term gold investing success, even through the inevitable rises and falls in the price.
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