Is now a good time to invest in gold?


The price is rising but is still down from its 2023 peak

The attack on Israel by Hamas and the prospect of a Middle East war caused a spike in the price of gold this week, but the precious metal remains well below its high for the year. 

So, if you were thinking of investing some money in gold, is now a good time to buy? Alex Ebkarian, COO and co-founder of Los Angeles-based Allegiance Gold, believes it is.

“Gold is viewed as a mid-to long-term, safe-haven investment that diversifies portfolios and, over time, helps investors weather inflation, high interest rates, and especially geopolitical uncertainty, including various conflicts we are witnessing like the Ukraine war, US-China tensions, and now the Middle East,” Ebkarian told ConsumerAffairs.

Gold prices rose about 1% on the first day of trading after the attack on Israel. Ebkarian says that’s not unusual since investors often flee to safety amid periods of international tensions.

There are several ways to invest in gold. You can invest in physical gold bars and coins. We recently reported that Costco has begun selling one-ounce gold bars on its website.

But investors can also invest their money in gold IRAs, ETFs, futures, options and gold mining stocks.

“However, we believe that investing in physical, tangible gold is the optimum strategy because it offers the investor more control and privacy since transactions can be relatively discreet, and eliminates counterparty risk,” Ebkarian said. “When you own physical gold, you do not have to rely on any financial institution or counterparty to fulfill your investment.”

Another view

However, you do have to find a way to securely store it. And there are other considerations before making an investment.

Robert Johnson, professor of Finance at the Heider College of Business at Creighton University, thinks there are better places to put your money. 

“While having a small position in precious metals may dampen portfolio volatility in the short-run, the tradeoff between slightly dampened volatility and the lost long-term return is certainly not a prudent one, particularly for Gen Z/millennials with long investing time horizons,” Johnson told us.

But CNBC stock picker Jim Cramer believes everyone should have some gold, in some form, in their portfolio of assets, calling it a hedge against inflation.

Check out ConsumerAffairs’ reviews of gold dealers and gold IRAs. And it's always a good idea to talk to a trusted and objected financial adviser before making a major investment.

Quick and easy. Get matched with a Gold IRA partner.