Gold has been a prized possession for centuries, and its allure shows no signs of fading. Whether you’re looking to diversify your investment portfolio or simply want to hedge against market volatility, gold is a safe and tangible asset that can provide peace of mind.
The Demand for Gold
- Gold prices have hit a record high of $3,500 per ounce, up 31% since the start of the year.
- The average gold bar weighs around 400 ounces, making owning one a millionaire’s dream.
- JP Morgan projects gold prices will reach $4,000 per ounce by 2026.
According to Jonathan Rose, cofounder and CEO of Genesis Gold Group, the demand for gold and silver is always high. However, he emphasizes that gold is not the best way to save for retirement or a rainy day. Like other investments, the price of gold fluctuates.
Where to Buy Gold
Buying gold can be done through authorized dealers, such as the U.S. Mint, or through online retailers like Costco, Walmart, and Amazon. However, it’s essential to do business with reputable sellers to avoid counterfeit gold.
- Authorized Dealers:
- Costco (online and in-store)
- Walmart (online)
- Amazon (online)
Costco, for instance, has been selling gold bars online, with prices ranging from $1,200 to $2,000 per 400-ounce bar. The warehouse retailer has been doing a brisk business, with sales limited to two gold bars per membership.
“There’s a lot of fake gold out there online,” says Rose. “Do business with an American company that is licensed and bonded by the state to sell gold bars and is known as a reputable dealer.”
Storing Your Gold
Once you’ve bought your gold, the next challenge is where to store it. Rose emphasizes that there’s no one-size-fits-all solution, as it depends on the amount of gold you have and your personal comfort level.
- Home Storage:
- Under the mattress or in a floor safe
- Safety Deposit Boxes
However, if you’re amassing a small fortune or don’t feel comfortable storing your gold at home, there are licensed storage facilities that specialize in storing precious metals.
It’s worth noting that the storage of gold requires careful consideration, as it can be a significant investment. Some retailers, like Costco, don’t make much of a profit on gold bars, but instead use it to boost membership. This can result in consumers getting a good deal, but also limits the number of gold bars they can buy.
Conclusion
Investing in gold can be a great way to diversify your portfolio and hedge against market volatility. However, it’s essential to do your research, buy from reputable sellers, and store your gold in a secure location.
