The Gold Rush in the City

October 30th, 2024: A Big Day for Gold!

So, here’s the news. October 30, 2024, wasn’t just another autumn day in the Big Apple. The gold spot price decided to reach a dizzying new high, just about one year after Costco, of all places, began selling gold bars on its site. Intrigued? I bet it caught your eye, too!

Learn more: What to know before buying gold, silver, or platinum from Costco

Gold: Not Just a Shiny Metal

Investors—from newbies to Wall Street wolves—see gold as a great buffer. While stocks might be unpredictable and go up and down like a yo-yo, gold often holds its value like it’s some magical financial anchor. It can even appreciate when everything else seems to be going south.

Why Gold Now?

Gold wasn’t just having a moment. You want reasons? Analysts from big-shot firms like Goldman Sachs and JPMorgan have chimed in on the benefits. Central banks around the world are upping their gold buys. You can’t blame them with falling interest rates and global political drama firing up every other day.

Yahoo Finance news: Gold jumps to 1-week high as Russia-Ukraine war escalates

Investing Goals with Gold

So, you’re interested? A golden investment (pun intended) can serve you three ways:

• Diversification: Your stocks and bonds won’t move like gold. That’s a good thing.
• Protection: Safeguard that dollar from inflation eating at its value.
• Backup: Just in case the economy decides to nosedive.

Deciding How Much

Scott Travers, the guy who wrote "The Coin Collector’s Survival Manual," has a tip. Consider holding 5-15% of your net worth in gold. Bold enough? Some say go up to 20%—but only if you’re ready for any risks.

Learn more: How to start investing in 2024: A step-by-step guide

Allocation Matters

Setting your portfolio mix with consideration for gold, stocks, and bonds is key. As time rolls on, those values shift like Times Square at rush hour. You might end up heavy in stocks unless you rebalance periodically. Oh, and don’t overdo it just because gold’s the talk of the town.

Forms of Gold: So Many Choices

After deciding your allocation, the next step is choosing your style. Physical gold, mining stocks, or ETFs—take your pick.

Physical Gold: The Real Deal

Gold in the flesh—jewelry, bars, coins—it’s tangible and feels real nice to have around. But watch out for…

• Risk of Theft: Like a bad subway pickpocket story, gold can get snatched. Securing it is a must.
• Liquidity and Hassle: Want to sell quick? Not easy. You might need to deal with markups.

Say you’re storing at home: if worst comes to worst, it’s tradable. Just remember to check your jewelry before splurging on more. With gold’s value spiking this year, your trinkets might be worth more than you think.

Mining Stocks: A Different Route

If you’re down with indirect exposure, then here’s what you need to know:

• Liquidity is High: Stocks like Barrick Gold Corporation and Franco-Nevada are liquid. That narrow bid-ask spread? It’s a good sign.

• Storage? No Worries: Stocks are safely tucked in your brokerage account. But if the economy gives out, that could be tricky.

These can be more volatile, swinging up and down faster than a cabbie’s mood in Midtown traffic. Keep that in mind!

ETFs: Convenience and Costs

Finally, say hello to Gold ETFs. They’re all the rage with their benefits:

• Storage-Free: Just like stocks, live in your brokerage—zero physical footprint.
• Liquidity Plus: Take SPDR Gold Shares, for instance. Heavily traded means easy to sell, any day.

But don’t ignore those pesky fund fees. That SPDR Gold Shares, for example, comes with a 0.40% expense ratio.

Learn more: Take a deeper dive into the gold sector

Timing is Everything

Think about your timeline before pouring your savings into gold. It’s a volatile beast, with long stretches where downward is the only direction. If you’re in it for the long haul, gold won’t let you down. But if you’re looking for a quick buck, maybe reconsider.

As a hedge against stock slides or inflation, patience pays off. Keep gold around for a rainy day. Who knows when you might actually need it.

Stay savvy, stay golden!