Why Gold is Hot Again: A Beginner's Guide

Gold is having a moment in 2024. Its value has skyrocketed by over 30%, hitting an all-time high of $2, 748. 23 this week. What's driving this gold rush? The Federal Reserve's recent interest rate cut, global tensions, and uncertainties around the upcoming US presidential election have all played a part. Central banks in countries like China, India, and Turkey are also boosting demand by relying less on the US dollar. Even retail giant Costco is getting in on the action by stocking 1-ounce gold bullion bars. So, why should you care about gold? People often turn to gold when things feel uncertain. It's seen as a safe haven because it tends to hold its value better than other assets like stocks, bonds, and currencies during economic downturns. For example, during the 2008-2012 period, gold's value soared by over 101%.But how do you actually buy gold? First, think about why you want it. Is it to diversify your investments or as a safety net? Then, decide if you want to invest in gold through financial tools like gold-backed ETFs or buy it physically. Physical gold comes with extra considerations, like storage and purity. Before you buy, check if the price of the gold product aligns with the current market price or 'spot price'. Also, be cautious about scams. If a deal sounds too good to be true, it probably is. You can buy gold from banks, trustworthy shops, or online. When you're ready to sell, make sure you have a reliable partner to help you out. Gold-backed ETFs are a simpler option. They're like buying stocks, and many platforms let you trade them for free. But remember, it's important to do your research before making any investment.