Gold prices have surged in 2024. Here’s how to get in on the gold rush
CTV
Not all that glitters is gold, but the value of the precious metal has been surging this year.
Not all that glitters is gold, but the value of the precious metal has been surging this year.
Gold prices have broken record after record, rising more than 30 per cent in 2024 while hitting an all-time high of US$2,748.23 this week.
The U.S. Federal Reserve’s recent dramatic half-point interest rate cut, geopolitical tensions and economic uncertainty surrounding the U.S. presidential election have created the conditions for prices to soar. The rally has been boosted by the central banks of China, India and Turkey easing their reliance on the U.S. dollar as well as retail giant Costco stocking 1-ounce bullion bars.
“Costco offering gold makes it as easy for a retail investor to buy gold as it is for them to buy household staples,” said Joseph Cavatoni, senior market strategist for the World Gold Council. “Buying gold has never been easier and more accessible.”
While gold, typically invested in as a hedge against inflation, has shined this year, there are plenty of things to know before investors join the gold rush.
Traders tend to flock to gold during periods of uncertainty, betting that its value will hold up better than other assets such as stocks, bonds and currencies if an economy faces a downturn.
“Between 2008 and 2012, the value of gold increased dramatically, as is evidenced by the 101.1-percent surge in the Producer Price Index (PPI) for gold,” the U.S. Bureau of Labor Statistics noted.
