By Arlenys Tabare
01 Sep 2024, 15:42 PM EDT
From January 1st to August 30th of this year, The price of gold has seen an impressive increase of 22% which has caused many investors to set their sights on this precious metal.
At the beginning of the year, Gold was quoted at approximately $2,063.73 per ounce and by mid-2024 it had reached $2,522.28 per ounce.This means that in the last eight months its price has increased by $448 dollars per ounce.
Investing in gold has always been a reliable alternative during times of economic turbulence as Provides a secure savings backup with higher returns; and as September begins, expectations are growing for another historic peak in the prices of this metal.
The surge in inflation in 2022 has caused an increase in demand for gold, but as the inflation rate gives in to pressure from the Federal Reserve with the increase in interest rates, many are questioning what impact this could have on investment in gold.
Daniel Gilham, Certified Financial Planner and Director of Advisory Strategy at Farther.com, said: “Gold has recently hit market highs due to rising geopolitical risk around the world and persistent inflation. Fears that the US debt balance will cause the dollar to devalue have caused investors to seek a safe haven in traditional investment assets.”.
However, a Fed meeting is scheduled for this month where interest rate cuts are expected to begin, raising the question of whether or not it is worth investing in 1-ounce gold bars in September.
Experts believe that despite the economic outlook, 1-ounce gold bars will continue to be a good investment this September and probably for the rest of the year, and there are several reasons for this assertion.
First of all, It is a safe way to diversify investments since its price is set independently of stocks or bonds, It is a truly versatile financial tool that provides security against depreciation of the local currency.
On the other hand, 1 ounce gold bars in particular have a globally standardized unit or price This means that they can be easily traded worldwide. They also tend to have a lower premium over the spot price or smaller denominations (1 gram or 10 grams).
What experts do recommend is that those who are thinking of investing in this metal should not wait too long, since as its price increases on the market, they will end up paying more and the opportunity to see a quick return will decrease.
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