Gold prices hit a record high on Monday, with spot prices reaching just over $2,100 an ounce. A spot price is the value at which an asset can be immediately bought or sold.
The price of gold peaked at $2,135.40 an ounce during Asian trading hours, according to Reuters, before dipping 2.3% to $2,022.99 later in the session. By Tuesday morning, it had risen back up slightly to $2,038.60.
Gold prices have been climbing steadily since October and, according to analysts, could remain above $2,000 — and even hit new highs — in 2024.
For those who are interested in investing in gold, CNBC Select explains a few ways to get started.
Why invest in gold?
When the geopolitical environment is tumultuous — as it is now — investors look to gold as a more stable option, since it’s a tangible asset that has been universally accepted for millennia.
And since the supply of gold is inherently limited, it’s a hedge against inflation.
Investing in precious metals is also a good way to diversify your portfolio, which can help you manage risk and increase returns in the long run.
What is a gold IRA?
A gold IRA allows consumers to invest in precious metals while receiving the same tax benefits as a traditional IRA. Since the IRS considers gold coins and bullion collectibles (like art or antiques) they can’t be put in a traditional IRA. Instead, gold IRAs are overseen by a broker-dealer or other IRS-approved custodian.
Rosland Capital has one of the top gold IRAs on the market and, with a minimum purchase requirement of only $2,000, it’s a good pick for newer investors.
Rosland Capital
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Initial purchase requirements
Minimum purchase requirement of $2,000
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Account minimums
Minimum account balance of $2,000
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Fees
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Annual $100 Maintenance fee
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Storage Fees of $100 or $150 per year, depending on the type of storage chosen
Birch Gold Group, which has offered precious metal and coin investments since 2003, stands out for its cost transparency: Its website lists fees clearly and offers recommendations for new investors. Birch also has a strong record of customer service, receiving an A+ rating from the Better Business Bureau and a AAA from the Business Consumer Alliance.
Birch Gold Group
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Initial Purchase Requirements
Minimum initial purchase requirement of $10,000
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Account Minimums
Minimum account balance of $10,000
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Fees
As with a traditional IRA, any withdrawal from a gold IRA before age 59½ is subject to a 10% penalty tax. So, experts recommend only investing funds you’re willing to leave untouched until then.
Other ways to invest in gold
Owning physical gold has its drawbacks — it’s hard to liquidate and you have to pay for storage and security — but there are ways to reap the rewards without going through all those hoops.
You can also invest in gold stocks, futures and exchange-traded funds (ETFs). Gold futures actually hit an intraday record of $2,152.30 on Monday.
Charles Schwab sells gold futures and other precious-metal securities. Importantly, the company allows investors to purchase fractional shares, so you can invest up to a set dollar limit rather than pay for whole shares.
Charles Schwab
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
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Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
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Bonus
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Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™ and Schwab Organization Account
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Investment options
Stocks, bonds, mutual funds, CDs and ETFs
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Educational resources
Extensive retirement planning tools
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Bottom line
With gold prices expected to stay elevated in 2024, investors are turning to the precious metal as a buffer from economic uncertainty.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.