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In the midst of a turbulent economic landscape characterized by persistent inflationgeopolitical tensions and high interest rates, the price of gold has experienced a remarkable increase. while gold price had been rising in recent months, the precious metal broke previous records in late May when it broke above the $2,400 mark an ounce, up slightly from $2,100 an ounce in late March.
And while the price of gold has fluctuated since then, the recent rebound in gold prices has helped to attract even more new and seasoned investors to the precious metal. But rising prices aren't the only driver in this equation. For example, investors looking to safeguard their wealth and diversify away from volatile assets are also turning to gold in today's economy as a way to add a safe haven investment in their wallets.
Considering the recent rise in prices, i the other benefits that can be obtained from investing in gold; you may be wondering if you should follow suit and add gold to your portfolio this June. And while you have many ways to do it, many investors will opt for 1 ounce gold bars, which are popular for their compact and accessible nature. But should you put money into 1-ounce gold bars this June? There are a few reasons why you might want to consider this.
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4 good reasons to buy 1 ounce gold bars in June
Here's why you might want to add 1 ounce gold bullion to your investment portfolio this June:
It may be a good time to buy at a lower price
Gold prices rose a new record from $2,439.98 an ounce on May 20. However, this rise has been followed by a pullback, which is presenting an attractive entry point for investors. As of May 30, 2024, the price of gold stands at $2,334.09 per ounce, down more than $100 from the recent high. This drop in prices offers a favorable opportunity for those who want it buy gold at relatively lower price.
However, it is crucial to recognize that gold prices are inherently volatile and subject to fluctuations driven by a myriad of economic factors including inflation, interest rates and investor sentiment. Although gold has historically shown a tendency to appreciate over the long term, short-term price movements can be unpredictable. Therefore, there is a possibility that the current level of reduced prices will not persist, as gold prices could recover or even surpass previous all-time highs in a matter of days or weeks.
Accordingly, investors looking to capitalize on the current price drop may want to act quickly, as any delay could mean missing out on an opportunity to purchase gold at a lower price.
Learn more about the many benefits of investing in gold here.
The Fed's upcoming decisions could push the price of gold higher
If historical gold price trends are any indicator, the upcoming Federal Reserve meeting, which is scheduled for June 11-12, has the potential to significantly influence gold prices. This is because, with the current uncertainty surrounding interest rates and the Fed's monetary policy decisions, investors typically add gold preemptively to their portfolios prepare for any decision that may affect the economic landscape.
And, if the Fed's decisions or statements suggest a continuation of the current rate environment or indicate further rate hikes, it could further increase demand for gold. So if you invest in 1oz gold bullion in early June, you may be able to capitalize on any possible price increase resulting from the June Fed meeting and subsequent market reactions.
However, if you want to give it a good shot, you'll need to buy sooner rather than later, as the price of gold tends to rise the closer we get to the Fed meetings. So if you wait, you could end up paying more than you would if you bought now.
This type of gold bullion is generally more affordable and accessible
Despite the recent rise in gold prices, 1 ounce gold bars they remain an accessible and relatively affordable investment option, especially compared to other gold bullion options. While the current price may seem high, the smaller denomination of 1-ounce bars allows investors diversify their portfolios without requiring a significant initial investment.
The physical nature of these gold bars also offers tangible ownership, providing a sense of security and control over one's assets, which can be especially attractive in times of economic uncertainty or market volatility.
Storage and custody costs it can also be high when investing in physical gold bars, but 1 ounce gold bars are small and compact enough to be stored by you in a safety deposit box or safe deposit box, reducing additional costs.
Investing in 1 ounce gold bars also offers other benefits
Investing in 1 ounce gold bars offers numerous advantages beyond the aspects of accessibility and affordability. For starters, gold has long been recognized to provide a hedge against inflationand with persistent inflation an ongoing problem, you may want to consider buying. As a tangible asset with inherent value, gold can also help protect against the risks associated with more volatile assets such as stocks.
Gold bars are too very liquid and can be easily traded or sold when needed, making them a versatile investment option. Its standardized weight and purity also contribute to liquidity and ease of valuation.
And, gold is a finite resource with limited supply, which can further contribute to its long-term value appreciation. So, as demand for gold continues to rise, the value of the physical gold investments you make this June may continue to increase over time.
The bottom line
With gold prices experiencing a decline from their recent all-time highs, June presents an opportune time for investors to take note adding 1 ounce gold bars to their portfolios. And, the upcoming Federal Reserve meeting, along with the uncertain economic outlook, could push gold prices higher, allowing investors to capitalize on the surge. In addition, these gold bars also offer other benefits such as accessibility, affordability and tangible ownership. Therefore, by investing in these versatile assets this June, you may be able to protect your wealth and benefit from future price increases, if the recent uptrend continues.
