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Investing in gold has recently provided remarkable benefits, driven by a combination of macroeconomic uncertainties and inflationary pressures.
At the beginning of 2024, gold was trading at approximately $2,043 per ounce. As of this writing, it has risen to just over $2,340 per ounce, marking a gain of greater than 14% in under six months. And five years ago, gold traded at just $1,300 per ounce.
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James Rickards, a well-known lawyer and investment banker, has made notable predictions regarding the future pricing of gold. Initially estimating that gold could reach $15,000 per ounce, Rickards is raising his forecast — substantially.
“My latest forecast is that gold may actually exceed $27,000,” Rickards wrote in a recent column. “I don’t say that to get attention or to shock people. It’s not a guess; it’s the result of rigorous analysis.” Based on his calculations — which center around the U.S. M1 money supply — Rickards’ advice is straightforward: “The lesson for you as an investor is to buy gold now.”
Investment Strategies
To establish a price prediction for gold, Rickards posed a straightforward question: “What’s the implied non-deflationary price of gold under a new gold standard?”
He explained that in a system in which dollars are freely exchangeable for gold at a fixed price, if gold price is too high, it will lead to investors selling gold for dollars and spending “freely.” Conversely, if gold price is too low, investors will “line up to redeem dollars for gold and then hoard the gold.”
Rickards recommends starting with gold bullion, a tangible form of investment that can be purchased from reputable dealers.
Although it requires secure storage, physical gold provides a stable investment less affected by market fluctuations.
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Gold stocks & ETFs
One dynamic way to leverage rising gold prices is by purchasing shares in gold mining companies. These companies can experience significant gains as gold prices soar, making them a tasty option for savvy, active investors.
Platforms like Interactive Brokers offer low-cost, efficient access to a wide array of stocks — including gold mining stocks — ensuring you can easily make informed and profitable investment decisions.
Alternatively, ETFs provide a more straightforward approach to investing in gold. ETFs track the performance of gold by holding physical gold or gold futures contracts, offering investors a convenient way to gain exposure to gold’s value without the need for direct ownership.
Interactive Brokers facilitates investments in gold, providing a versatile platform for building a robust and diversified investment portfolio. Whether you prefer the direct potential of gold mining stocks or the relatively steady performance of gold-tracking ETFs, Interactive Brokers has the tools and resources to help you.
Gold for retirement
Individual Retirement Accounts (IRAs) are a popular way to save for retirement, offering tax advantages that can help grow your savings over time.
Incorporating gold into a retirement portfolio through gold IRAs offers tax advantages and growth potential.
Goldco — a trusted platform with an A+ rating from the Better Business Bureau — simplifies this process.
Gold IRAs allow for direct investment in physical precious metals. They combine the tax benefits of traditional retirement accounts with gold’s growth potential and inflation-hedging capabilities. Contributions to gold IRAs are made with after-tax dollars, providing tax-free growth and withdrawals.
If you share James Rickards’ bullish outlook on gold’s future, adding a gold IRA to your retirement strategy could be a wise and profitable decision. Goldco’s expertise and trusted reputation can guide you through the process, ensuring you maximize the benefits of investing in physical precious metals to help secure your retirement fund.
For more information on how to get started with a gold IRA, consider exploring Goldco’s offerings and their seamless application process. Investing in gold through a gold IRA might be a secure and profitable addition to your retirement portfolio needs.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.