Many experts predict that the price of gold will fluctuate significantly in the coming period due to the impact of major events such as the BRICS Summit and the 2024 U.S. elections. Therefore, many are asking whether they should continue investing and storing gold. If so, what type of gold should you buy for storage in the U.S. to remain safe from inflation and political instability? Don’t miss this article!
Why is Gold an Attractive Investment in 2024?
Gold is a safe asset amidst economic instability
In the context of global economic fluctuations: rising public debt, concerns about U.S. dollar manipulation, inflation, geopolitical instability, presidential elections, etc., gold has become a haven for investors looking for a way to protect their assets against these uncertainties.
Average profit of the gold market from 2009 – 2024
Take a look at the average return of gold from 2009 to now, calculated purely in U.S. dollar terms. Gold has achieved an average return of 8.4%. In 2024 alone, this figure has risen to 31.6% – much higher than bank savings. Compared to stock market investments, gold may not have higher returns, but it is extremely safe.
If you look at the negative returns in the gold investment market in the years 2013, 2014, 2015, 2018, 2021, and 2022, don’t forget that if these numbers are unsatisfactory, you can continue to store gold until it appreciates before selling. Inflation does not affect gold, so storing it won’t cause any loss.
The rise in gold prices
In the U.S., the price of gold hit a record high of $2,743/ounce this Monday, marking an increase of nearly 33% since the start of 2024 and representing gold’s strongest year of growth since 1979. However, the price of gold is expected to continue rising shortly, possibly reaching $150,000/ounce.
Gold price sets a new record and is expected to continue to increase strongly
Gold price has continuously “climbed the peak” in the past 5 months
In the European and UK markets, gold prices also hit new records at 2,523 euros/ounce and 2,102 British pounds/ounce, respectively. This increase is the result of many countries, especially BRICS nations, hoarding gold at near-record levels to reduce reliance on the U.S. dollar.
The Role of BRICS in Restructuring Global Finance
The recent BRICS Summit may serve as a trigger for the formation of a new global monetary system called the “Unit.” Notably, 40% of the value of this system is based on gold. Since the BRICS concept was introduced in 2001, global central bank gold reserves have increased by 9%. This will lead to a significant shift in how countries value and use gold in international transactions.
The De-dollarization Trend
The de-dollarization trend is accelerating rapidly. BRICS member countries and other central banks are currently concentrating on repatriating gold to reduce reliance on the U.S. dollar and the Western financial system. If this continues, there will be no reason for countries and financial institutions to hold onto USD or U.S. Treasury bonds. This could diminish the global appeal of the dollar, thereby boosting demand for gold storage.
Strengthening Gold’s Role in New Financial Platforms
The development of Central Bank Digital Currencies (CBDCs), such as the mBridge project between China, Hong Kong, Thailand, and the UAE, is seen as an alternative to the current SWIFT system. In this context, gold could play a central role in global financial transactions, increasing its liquidity and stability as a medium of exchange.
Central banks have been increasing their gold reserves. In 2023 alone, global central banks purchased approximately 400 tons of gold, the highest figure in many years.
What type of gold should you buy for storage in the U.S.?
Below are the 5 most popular types of gold in the U.S. for investment and storage, though each type has its characteristics to consider:
Gold Bars
Gold bars are a popular choice for long-term asset protection. They are highly pure, typically 24k (99.99% pure). This type of gold offers the best value when purchased in large quantities, and well-known brands such as PAMP Suisse, Credit Suisse, and American Buffalo are trusted by investors.
Prediction: According to recent analyses, if a global monetary revaluation occurs, gold bars could reach record-high values, particularly if demand exceeds supply.
Gold Coins
Gold coins like the American Eagle or Canadian Maple Leaf are popular in the U.S. due to their high liquidity and value guaranteed by reputable institutions. Coins not only have intrinsic value based on their gold content but also collectible value, especially limited-edition versions.
BRICS Forecast: If emerging economies continue to promote moving away from the U.S. dollar and toward gold as a store of value, the demand for gold coins may increase sharply, especially in emerging markets.
Gold Jewelry
Although gold jewelry can be an aesthetically pleasing option, it is not the best choice for storing assets. The value of gold jewelry is often reduced due to craftsmanship costs, and its purity is usually lower than that of bars or coins.
Gold Bullion
Gold Bullion is a form of gold storage with high purity, typically traded on the international market in large blocks. Bullion bars are larger than standard gold bars and are sold in large weights, often starting at 1 kilogram. Large investors or institutions prefer this type of gold due to its ability to store large quantities at a lower cost compared to gold bars or coins.
Prediction: Bullion bars are typically used by investment funds or central banks, and with the increasing global gold hoarding, the value of bullion could continue to rise as gold becomes an official international reserve asset.
Gold ETFs (Exchange-Traded Funds)
Gold ETFs are an investment method that does not require holding physical gold. This is a popular means for investors who do not want the risks associated with storing and maintaining physical gold. ETFs allow investors to access the gold market without having to buy and store actual gold, such as SPDR Gold Shares (GLD), the largest gold ETF in the world.
Advantages: Gold ETFs provide investors with easy access to the gold market without the worries of physical storage. Additionally, they are highly liquid and trade similarly to stocks.
Forecast: With gold prices expected to rise in 2024, gold ETFs could attract more investors seeking safety while minimizing the costs associated with holding physical gold.
Below is a comparison table of the 5 common types of gold, giving readers a clearer view of their gold investment options:
| Type of Gold | Advantages | Disadvantages |
| Gold Bars | – High intrinsic value, directly reflecting market gold prices.
– Easy to store, inspect, and transfer. – High liquidity. |
– Can be affected by storage and transport costs.
– Difficult to use in small daily transactions. |
| Gold Coins | – Easy to store and transport, can be used as gifts.
– High potential value due to the rarity of certain coins. – The value of the coin can exceed the value of pure gold. |
– Can sometimes be difficult to price and liquidate. |
| Gold Jewelry | – Often beautifully designed with artistic value, easy to use in daily life.
– Investment can bring emotional value. |
– The value of gold may be lower than production and design costs.
– Difficulty in pricing and resale. |
| Gold Bullion | – Suitable for large investors wanting to own large quantities of gold at a lower cost per ounce.
– Long storage time. |
– Large size, making storage difficult.
– Requires certification from reputable institutions to ensure authenticity. |
| Gold ETFs | – High liquidity, easy to buy and sell on the stock market.
– No need to worry about storage issues. – Low transaction costs. |
– Management fees may reduce profits.
– Market risks if gold prices drop sharply. |
Factors Affecting Gold Prices in 2024
Several major factors are influencing gold prices in 2024:
- Global Monetary Reset: With BRICS likely continuing discussions about reshaping the world monetary system, gold prices could be revalued, possibly reaching $150,000/ounce, as some analysts have predicted.
- 2024 U.S. Election: As the U.S. election approaches, rising political risks have led investors to seek gold as a haven, increasing demand for gold.
- Rising Real Interest Rates: As U.S. real interest rates rise rapidly, demand for non-yielding assets like gold typically decreases. However, concerns about economic collapse may still drive up gold prices due to financial stability fears. Real interest rates in the U.S. have risen 23 basis points in the past three weeks, reaching their highest level since August at 1.82%. Although rising interest rates usually pressure gold prices, in 2024, gold has continued to rise against traditional rules.
Gold Price Forecast for Late 2024
Bank of America and other experts predict that, given current economic volatility and BRICS’ attempts to establish a new economic order, gold prices will continue breaking records in the last two months of 2024, potentially reaching $3,000/ounce. Furthermore, analysts from major financial institutions warn that rising debt ceilings and borrowing costs could push gold prices even higher.
Conclusion
For U.S. investors looking to store gold in 2024, options like gold bars, coins, and gold ETFs are all strong potential choices, depending on individual investment needs. With gold prices expected to continue rising, this is a good time to consider investing and storing gold as a long-term asset protection measure.
Thinksmart Insurance has provided readers with the latest information on the gold market and categorized what type of gold should be purchased for storage in the U.S. Don’t forget to follow us regularly to stay updated on the newest information regarding investments, life insurance, and health. If you have any questions, feel free to call our hotline at (678) 722 3447 or leave a message via Messenger or email us at Support@Thinksmartinsurance.com.
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