TORONTO, March 26, 2024 (GLOBE NEWSWIRE) — Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today announced that it has filed its annual information form and 2023 annual report on Form 40-F, including its audited financial statements for the year ended December 31, 2023, with the SEC on EDGAR as well as the Canadian securities authorities on SEDAR+. These documents are also available at www.alamosgold.com and a hard copy will be provided to shareholders free-of-charge upon request.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 1,900 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Senior Vice President, Investor Relations
(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise stated.
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Gold prices surged, supported by a decline in the U.S. dollar, as investors awaited upcoming data to assess inflation trends, crucial for understanding the Federal Reserve’s approach to interest rates, on Tuesday.
At 09:58 a.m. EDT (1358 GMT), spot gold climbed 0.5% to $2,182.77 per ounce after spiking by as much as 1.3% earlier in the day. Meanwhile, U.S. gold futures for April delivery increased by 0.3% to reach $2,183.00.
The weakening of the dollar index by 0.1% contributed to this rise, rendering gold more affordable for international purchasers.
The attention of the market is currently centered on the upcoming release of the U.S. Core Personal Consumption Expenditure Price Index data [PCE], scheduled for Friday. Market response to this data might be delayed until next week due to the Good Friday holiday.
Meanwhile, non-yielding bullion reached a historic peak of $2,222.39 last week following indications from Fed policymakers that they anticipate a reduction in rates by three-quarters of a percentage point by the end of 2024.
Back home, the Multi Commodity Exchange (MCX) witnessed a notable in active trading in precious metal with a focus on gold futures contracts set to expire on April 5, 2024, valued at ₹65,961 per 10 grams.
“Gold traded higher by 300rs around 66300 in MCX as Comex gold found support near 2170$ and rallied to 2195$ with backed up from the FED’s dovish statements the gold prices are broadly in positive trend but with resistance been seen at 2200-2205$ zones for the week. US GDP number son Thursday & Core PCE price index on Friday will be tracked keenly as they provided important impetus on FED’s watch tool,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Analysts expect the gold prices to remain rangebound till prices are holding above support at ₹65,440/ 65,150.
“Gold is seen stuck in a range as we look ahead to more economic data and the central bank action on the interest rates, some caution is seen in the market ahead of the U.S. GDP data on Thursday and PCE & core-PCE (Fed preferred inflation indicator) on Friday. However, rising consensus for a rate cut in June by the BoE, ECB and Fed in the June meeting is seen supportive to the bullion,” said Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.
Silver experienced a 0.4% decline, reaching $24.57, platinum saw a 0.2% increase, reaching $904.62, and palladium dropped by 0.2%, hitting $1,002.41.
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What is the price of gold today?
The price of gold traded at $2,187.60 per troy ounce, as of 9 a.m. ET. That’s up 0.60% since yesterday’s gold price per ounce and up 5.87% from the beginning of the year.
The lowest trading price within the last 24 hours: $2,167.73 per ounce. The highest gold spot price in the last 24 hours: $2,200.14 per ounce.
Gold spot prices
XAU/USD is the label for finding the spot gold price traded in U.S. dollars. In this case, gold (XAU) is traded against the dollar, and the price represents the cost of one (troy) ounce of gold in USD. But there are other foreign exchange markets, such as XAU/EUR for trading in euros and XAU/GBP for trading in British pounds.
The spot gold price represents the price at which gold can be exchanged and delivered, and prices are typically quoted in gold price per troy ounce in U.S. dollars. But prices can also be quoted per gram and kilo. It’s worth noting that a troy ounce is slightly heavier than a standard ounce.
Gold price chart
The chart below shows how the spot price of gold is trending over the year. The data is as of 9 a.m. ET and doesn’t display intraday highs or lows.
Year to date, gold is up 5.87% from the beginning of the year, as of 9 a.m. ET. The 52-week intraday high reached $2,222.14 on March 21, 2024, and the 52-week intraday low dropped to $1,810.47 on Oct. 6, 2023.
Remember that the spot price of gold is quoted in real time and represents the current price at which gold can be bought or sold for immediate delivery. For most investors, the spot price usually differs from the price they’ll pay or receive when they decide to purchase or sell their gold.
For example, buying physical gold involves overheads like storage costs and insurance.
When trading physical gold, the difference between the buying and selling price, known as the spread, can eat into returns. Dealers often incorporate their markups and transaction fees within these spreads, which means the actual price an investor pays might be higher than the current market rate, while the selling price they receive might be lower.
While gold certificates, gold exchange-traded funds and gold trusts offer more liquidity and are easier to manage than physical gold, they come with their own risks. These investment vehicles might only sometimes match the performance of the spot price of gold due to management fees and potential discrepancies in tracking.
In essence, while the spot price provides a general benchmark for the value of gold, the actual returns and costs an investor encounters differ based on the medium of purchase and the specifics of the investment.
Investing in gold
Buying physical gold involves overheads like storage costs and insurance.
When trading physical gold, the difference between the buying and selling price, known as the spread, can eat into returns. Dealers often incorporate their markups and transaction fees within these spreads, which means the actual price an investor pays might be higher than the current market rate, while the selling price they receive might be lower.
While gold certificates, gold exchange-traded funds and gold trusts offer more liquidity and are easier to manage than physical gold, they come with their own risks. These investment vehicles might only sometimes match the performance of the spot price of gold due to management fees and potential discrepancies in tracking.
In essence, while the spot price provides a general benchmark for the value of gold, the actual returns and costs an investor encounters differ based on the medium of purchase and the specifics of the investment.
Precious metals spot prices
Precious metals have long served as investment vehicles and industrial commodities. Like gold, the spot prices of silver, platinum and palladium fluctuate based on various market, economic and geopolitical factors.
Silver spot prices
Silver possesses both monetary and industrial value. While it’s used as a hedge against economic volatility, it’s also crucial in the electronics, automotive and medical industries. Its dual-use nature can lead to different market dynamics compared to gold.
The price of silver opened at $24.73 per ounce, as of 9 a.m. ET. That’s down 0.02% since the previous day’s silver price per ounce and up 3.36% since the beginning of the year.
The lowest trading price within the last day: $24.51 per ounce. The highest silver spot price in the last 24 hours: $24.89 per ounce.
Platinum spot prices
Platinum is another precious metal that commands attention. Rarer than gold and silver, its primary use is in automotive catalytic converters, which help reduce harmful emissions. Given the push for cleaner automotive technologies, the demand dynamics for platinum can vary, influencing its spot price.
The price of platinum opened at $907.85 per ounce, as of 9 a.m. ET. That’s down 0.04% since yesterday’s platinum price per ounce and down 8.09% year to date.
The lowest trading price within the last 24 hours: $901.80 per ounce. The highest platinum spot price in the last 24 hours: $912.05 per ounce.
Palladium spot prices
Palladium, like platinum, is pivotal in the automotive industry for catalytic converters. In recent times, there has been a surge in palladium demand due to stricter emission standards worldwide. Its scarcity and rising industrial demand have led to significant price volatility.
The price of palladium is $1,013.35 per ounce, as of 9 a.m. ET. That’s down 0.34% since yesterday’s palladium price per ounce and down 7.84% year to date.
The lowest trading price within the last 24 hours: $999.54 per ounce. The highest palladium spot price in the last 24 hours: $1,022.80 per ounce.
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Frequently asked questions (FAQs)
Gold’s value tends to fluctuate based on economic, geopolitical and market factors, so the answer to this question depends on the measured period. It’s also difficult to pinpoint the direction of future price trends ahead of time.
From the beginning of the year to March 26, 2024, the price of gold rose from $2,066.32 per troy ounce to $2,187.60, representing a 5.87% increase.
Gold can be highly volatile and subject to strong short-term price fluctuations.
Whether it’s a good time to buy gold depends on various factors, including your investment goals, risk tolerance and time horizon, the broader economic outlook, and forecasts about the gold market.
Historically, many people view gold as a hedge against inflation and currency fluctuations. Others see it as a store of value during economic downturns. At the same time, some may find diversifying a portfolio of stocks and bonds useful, given its low correlation to both assets.
“If you look at gold’s performance historically, it’s the kind of asset that should perform well through uncertainty, as it has done in five out of the last seven recessions,” said Joseph Cavatoni, chief market strategist for North America at the World Gold Council. “For people looking for a store of value and a portfolio diversifier, gold has a strong track record of delivering those qualities.”
if profit-taking sales occur at any time and prices move downward, there will be opportunities to buy gold again.
At the start of the short trading week due to holidays, gold prices are still on their strong upward trend, gaining at the start of the week to reach the resistance level of $2182 per ounce.
This is closest point to the psychological resistance level of $2200 per ounce.
Last week, gold prices moved towards the historical resistance level of $2222 per ounce before being later exposed to profit-taking selling, but this did not take it out of the general upward trend.
According to gold trading platforms, gold prices recorded weekly gains of about 0.3%, adding to their annual increase since the beginning of 2024 by about 5.1%. In the same performance, silver prices, the sister commodity of gold, exceeded the $25 per ounce level again. The white metal price was stable last week but is still up 4% so far this year.
In general, the metals market began to emerge amid renewed hopes of the Federal Reserve cutting US interest rates. Last week, the US Federal Reserve kept the benchmark federal funds rate unchanged, but the Summary of Economic Projections (SEP) indicated that officials still plan to cut US interest rates three times this year. At the same time, the SEP data pointed to higher interest rates for a longer period as the US central bank plans to pull the trigger for fewer rate cuts in 2025 and 2026.
Meanwhile, this supports the continued rise in gold prices because they are sensitive to interest rates as they can affect the opportunity cost of holding the non-yielding bullion.
According to the Economic Calendar, there will be some vital data this week that monetary authorities need to scrutinize, including the US Personal Consumption Expenditures Price Index. The Personal Consumption Expenditures Index, the Fed’s preferred inflation gauge, is expected to jump 0.4% on a monthly basis. The core PCE price index, which excludes volatile food and energy components, is also expected to rise 0.3%. On an annual basis, PCE and core PCE are expected to remain unchanged at 2.4% and 2.8%, respectively.
At the same time, US Treasury yields rose, with the yield on the 10-year note rising 2.5 basis points to 4.243%. The yield on the two-year note rose 3.2 basis points to 4.632%, while the yield on the 30-year note rose two basis points to 4.412%. Another factor affecting the gold market is the rise of the US dollar index (DXY), a measure of the dollar against a basket of other major currencies, to above 104.00. Despite some bumps along the way, the DXY has risen by about 3% since the beginning of the year so far. As is known, the strength of the US dollar is a bad thing for dollar-denominated commodities because it makes them more expensive for foreign investors to buy.
In other commodity markets, copper futures rose to $4.0315 per pound. Also, Platinum futures rose to $913.60 an ounce. Palladium futures rose to $1027.00 an ounce.
There is no change in my technical view of gold price performance as the overall trend remains bullish. Furthermore, it should be noted that moving towards the historical resistance at $2200 will push technical indicators towards strong overbought levels. As mentioned before, global geopolitical tensions will continue to be a fertile environment for further gold gains regardless of the performance of the US dollar. Therefore, if profit-taking sales occur at any time and prices move downward, there will be opportunities to buy gold again. Ultimately, the first break in the overall uptrend for the gold price requires a move towards support levels at $2135 and $2070 respectively.
Swaps markets showed wagers on a rate reduction in June are now at 63%, down from 69% late last week, after Fed Bank of Atlanta President Raphael Bostic on Monday reiterated his expectation for just one cut this year.
Still, gold remains near an all-time high as the central bank’s long-awaited pivot to monetary easing builds momentum in the market. Bullion’s gains since mid-February have also been underpinned by long-standing supports including heightened geopolitical risks in the Middle East and Ukraine, plus buying by central banks, led by China.
Inflation and interest rates are also in focus in Europe. European Central Bank Governing Council member Madis Muller said data over the coming weeks may be sufficient to confirm the slowdown in inflation by the time policymakers set borrowing costs in June.
[Click here for an interactive chart of gold prices]
The precious metal was also bolstered on Tuesday by weaker US dollar, which snapped a two-day rally after the People’s Bank of China on Monday set a stronger-than-expected reference rate for the yuan.
Bullion “moved higher again as the underlying demand for gold staying firm amid the prospect for rate cuts, geopolitical tensions, and today a slightly softer dollar,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S.
Spot gold rose 1% to $2,193.92 an ounce as of 10:38 a.m. in London. The Bloomberg Dollar Spot Index was down 0.1%. Silver and platinum edged higher, while palladium fell.
We consider bullion and the (SPX) to be effectively at opposite ends of an investment seesaw, with the SPX doing better when confidence in money, central banking and government is rising and gold doing better when confidence in money, central banking and government is falling. As discussed in a few TSI commentaries and blog posts over the past two years (for example, ), our investment seesaw concept was part of the inspiration for the Synchronous Equity and Gold Price Model (SEGPM) created by Dietmar Knoll.
In general terms, the SEGPM uses historical data to define a quantitative relationship between the SPX, the US$ gold price and the US money supply. More specifically, it is based on the fact that adding the SPX to 1.5 times the US$ gold price (and applying a scaling factor) has, over the long term, resulted in a number that tracks the US money supply. Consequently, it indicates the extent to which the combination of the US stock market and gold is currently under/over-valued compared to the money supply and can provide clues regarding likely future price levels for gold and the SPX. For example, a forecast of likely future levels for the SPX and the money supply would project a likely future level for the US$ gold price.
The following monthly chart shows our version of the SEGPM. On this chart, the red line is US True Money Supply (TMS) and the blue line is the Gold-SPX Model (the sum of the S&P 500 Index and 1.5 times the US$ gold price, multiplied by a scaling factor).
The Model’s current message is that at today’s levels of the money supply and the SPX, the gold price (around US$2150) is in the right ballpark. A much higher ‘fair value’ for gold would require a larger money supply and/or a lower SPX. For example, if the money supply were 5% larger and the SPX were around 4200 (about 20% lower than it is today), the Model would indicate a ‘fair value’ for gold of around US$3200/oz.
In the middle of last year (the last time we discussed the Gold-SPX Model) we thought that the low-$3000s for the US$ gold price was a plausible target for the first half of this year. While it is not out of the question that this target will be reached during the first half of this year, this is no longer a likely scenario because the SPX has performed much better than we thought it would. However, there is a good chance that the low-$3000s will be reached before the end of this year.
Gold Rate Today In India: On March 26, 2024, gold prices experienced a fall in India largely. However, the fundamental price for 10 grams remained close to Rs 61,000. A thorough analysis of the market revealed that the average price for 10 grams of 24-carat gold was approximately Rs 66,710, while 22-carat gold averaged around Rs 61,150.
At the same time, the silver market displayed an upward trend, reaching Rs 77,500 per kilogram.
Gold rate today in India: Retail gold price on March 26
Gold Rate Today In Delhi
As of March 26, 2024, in Delhi, the current price for 10 grams of 22-carat gold is approximately Rs 61,300, whereas 10 grams of 24-carat gold is priced at around Rs 66,860.
Gold Rate Today In Mumbai
Currently in Mumbai, the price of 10 grams of 22-carat gold stands at Rs 61,150, while the equivalent amount of 24-carat gold is valued at Rs 66,710.
Gold Rate Today In Ahmedabad
In Ahmedabad, the price for 10 grams of 22-carat gold is Rs 61,200, and for the same amount of 24-carat gold, it’s Rs 66,760.
Check gold rates today in different cities on March 26, 2024; (In Rs/10 grams)
City
22 Carat Gold Price
24-Carat Gold Price
Chennai
62,000
67,640
Kolkata
61,150
66,710
Gurugram
61,300
66,860
Lucknow
61,300
66,860
Bengaluru
61,150
66,710
Jaipur
61,300
66,860
Patna
61,200
66,760
Bhubaneshwar
61,150
66,710
Hyderabad
61,150
66,710
Multi Commodity Exchange
On March 26, 2024, the Multi Commodity Exchange (MCX) saw active trading in gold futures contracts expiring on April 5, 2024. These contracts were priced at Rs 65,961 per 10 grams. Additionally, silver futures contracts expiring on May 3, 2024, were quoted at Rs 74,763 on the MCX.
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Retail Cost of Gold
The retail price of gold in India, often referred to as the gold rate, is the final cost per unit weight that customers pay when purchasing gold. This price is influenced by several factors beyond the inherent value of the metal itself.
Gold is highly important in India because of its cultural significance, its value for investment, and its traditional role in weddings and festivals.
Mohammad HarisHaris is Deputy News Editor (Business) at news18.com. He writes on various issue…Read More
Both gold and silver prices recorded a dip on the Multi Commodity Exchange (MCX) on Tuesday, March 26, 2024.
Gold futures, maturing on April 5, 2024, stood at Rs 65,919 per 10 grams on the MCX, after recording a marginal dip of Rs 103 or 0.16 per cent. The previous close was recorded at Rs 66,022.
Similarly, silver futures, maturing on May 3, 2024, witnessed a downfall of Rs 140 or 0.19 per cent and were retailing at Rs 74,783 per kg on the MCX against the previous close of Rs 74,923.
GOLD, SILVER PRICES IN MAJOR CITIES
CITY
GOLD (per 10 grams, 22 carats)
SILVER (per kg)
NEW DELHI
Rs 61,390
Rs 77,900
MUMBAI
Rs 61,240
Rs 77,900
KOLKATA
Rs 61,240
Rs 77,900
CHENNAI
Rs 62,060
Rs 80,900
The gold and silver prices in India depend on several factors, including the value of the rupee against the dollar. Global demand also plays a key role in determining the trends observed in the rate of precious metals.
GOLD, SILVER PRICES IN INTERNATIONAL MARKET
Gold prices were stuck in a tight range on Tuesday as investor focus turns to U.S. inflation data due later this week, which could shed more light on the timing of the Federal Reserve’s first interest rate cut this year, news agency Reuters reported.
According to the latest metal report, spot gold stood at $2,170.59 per ounce by 0310 GMT, while, U.S. gold futures fell 0.2 per cent at $2,171.20 per ounce. .
Among other precious metals, spot silver fell 0.2 per cent to $24.63 per ounce.
Ian Pearce to retire August 1st, 2024 and Mr. O’Brien to transition to Chair of the Board
TORONTO, March 25, 2024 /PRNewswire/ – New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) is pleased to announce that Richard O’Brien has been appointed to its Board of Directors (the “Board“) effective immediately and will stand for election by shareholders at New Gold’s Annual General Meeting on May 14, 2024 (the “AGM“). Ian Pearce has informed the Board that he will retire from the Board on August 1, 2024. Following the AGM, it is expected that the Board will appoint Mr. O’Brien as Chair upon Mr. Pearce’s retirement from the Board. Mr. Pearce will assist Mr. O’Brien in transitioning into the role over the coming months.
Richard O’Brien has over 40 years of experience in the mining and energy sectors, including more than 20 years in chief executive officer and chief financial officer roles. He served as President and Chief Executive Officer of Newmont Mining Corporation from 2007 to 2013, Executive Vice President and Chief Financial Officer from 2006 to 2007, and Senior Vice President and Chief Financial Officer from 2005 to 2006. Mr. O’Brien also served as President and Chief Executive Officer of Boart Longyear Limited, the world’s leading provider of drilling services, drilling equipment and performance tooling for mining and drilling companies, from 2013 to 2015. He is currently a corporate director, serving on the boards of Vulcan Materials Co., Xcel Energy Inc. and Ma’aden, The Saudi Arabian Mining Company. He was also Chair of the Board of Pretivm Resources Inc. from 2019 to 2022, until its acquisition by Newcrest Mining Limited.
“On behalf of the Board and the team at New Gold, I would like to welcome Richard to our Board. I am confident he will provide valuable leadership as the Company prepares for increasing production and decreasing costs, transitioning to a significant free cash flow generator,” said Nick Chirekos, Chair of the Corporate Governance and Nominating Committee of the Board. “I would also like to thank Ian for his commitment, resilience and invaluable contributions to our Company since joining the Board of Directors in 2016.”
“It has been an honor to serve as Chair of the Board of New Gold. 2023 was a year of strong performance at our Company’s operations. With the completion of the Company’s growth projects this year and the release of three-year guidance, I believe now is the right time to look to the longer-term future of the Company and it is prudent to refresh leadership at the board periodically” said Ian Pearce, Chair of the Board. “Richard has an excellent reputation and track record of value creation and I’m looking forward to working closely with him during this transition period.”
About New Gold
New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds other Canadian-focused investments. New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility. For further information on the Company, visit www.newgold.com.
Certain information contained in this news release, including any information relating to New Gold’s future financial or operating performance are “forward-looking”. All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “targeted”, “estimates”, “forecasts”, “intends”, “anticipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect to: the anticipated appointment of Mr. O’Brien as Chair upon Mr. Pearce’s retirement from the Board and the successful transition thereof; and accomplishing the Company’s operational goals.
All forward-looking statements in this news release are based on the opinions and estimates of management that, while considered reasonable as at the date of this news release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this news release, New Gold’s latest annual management’s discussion and analysis (“MD&A”), its most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this news release are also subject to there being no significant disruptions affecting New Gold’s operations, including material disruptions to the Company’s supply chain, workforce or otherwise.
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation, the “Risk Factors” included in New Gold’s most recent annual information form, MD&A and other disclosure documents filed on and available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Forward looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
With the price of gold rising, now may be a smart time to get invested.
Getty Images/iStockphoto
The price of gold hit a record high earlier this month, hitting $2,160 per ounce. But then, it broke the record again, rising to $2,204.04 on March 20, according to American Hartford Gold. This comes as gold has made record gains in the last year, partially thanks to a renewed interest in investing in the precious metal. Gold can be a major help for investors looking for protection against inflation and a safe way to diversify their portfolio.
Like all investments, however, the timing needs to be right for the return to be worth it.
Against this backdrop, then, many are wondering if they should buy gold now, even at today’s current price, or if they should wait for it to drop down again. While the answer to this question is specific to the investor, there is a compelling case to be made to buy gold now. Below, we’ll break down three reasons why you may not want to wait for the price of gold to fall.
Should you buy gold now or wait for the price to drop?
Here are three reasons why investors may not want to wait to invest in gold.
There’s no guarantee that the price will drop
Waiting for the price of gold to fall sounds ideal, in theory, but there’s no guarantee that the price will drop anytime soon. Based on recent trends, gold’s value may only increase short term. So, while today’s price of $2,167.58 per ounce (as of March 25) may seem elevated, it could prove to be beneficial when stacked against a $2,300 cost per ounce in the months or years to come.
And remember that gold is less of an income-producing investment and more useful as a portfolio protector, anyway, so buying in (or selling) simply based on the price at any given time is generally not advisable as the only consideration.
You’ll miss out on inflation protection while waiting
Even if you wait for the price of gold to drop — and it does — you’ll miss out on vital inflation protection that gold provides in the interim. And, based on the latest Bureau of Labor Statistics report, inflation is still a concern. It rose in February and remains more than a full point above the Federal Reserve’s target 2% goal.
With this understanding, it makes sense to invest in gold now to hedge against inflation by adding an asset whose value tends to remain steady while inflation erodes the purchasing power of the dollar.
You may be able to make a quick profit
Gold is not and should not generally be considered an income-producing asset in the same way that stocks, bonds and others can be. It is, as stated, better as a portfolio diversifier and hedge against inflation. But that doesn’t mean that you can’t make a profit from gold by buying it at a low price and selling it at a higher one.
While this can generally take years to materialize, the price of gold has broken records multiple times over the last few years. With this understanding, you may be able to make a relatively quicker profit by buying the yellow metal now versus doing so in a different economic climate.
The bottom line
Waiting for an investment price to change favorably is always risky but is arguably more so for alternative assets like gold. And although the price of the precious metal has risen significantly in the past few years, it still may make sense to buy now. After all, there’s no guarantee that it will stop rising and, even if it falls, you’ll lose vital inflation protection in the interim. Plus, with prices increasing as they have been, this may be a rare opportunity to earn some income from an asset historically better known as a portfolio diversification and inflation protector. For all of these reasons, it may make sense to invest in gold even now. As is the case with all investments, however, you should thoroughly consider all options before buying gold to improve your chances of earning substantive returns.
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
