Gold Prices Are Nearing the $2,800 Mark: Is It a Good Time to Invest?

The gold market has seen remarkable growth throughout 2024, with prices reaching new heights and breaking multiple records. The bull market for gold began in early March when prices soared to $2,160 per ounce, marking an 8% increase from the previous record set in December 2023. This upward trend has continued, with gold prices consistently breaking records as they climb. Currently, prices are approaching $2,800 per ounce. This rapid increase has led to substantial gains for investors who entered the market earlier this year. For instance, those who bought gold in March at $2,160 per ounce have experienced a nearly 27% rise in value since then. This is a significant increase in just a few months, especially for an asset typically associated with long-term growth. However, while early investors have reaped the benefits of this price surge, potential newcomers may be questioning whether now is the right moment to invest. The idea of purchasing at such high prices seems to contradict the fundamental investment principle of buying low and selling high. So, is it wise to invest in gold at this premium price?

Is Now the Right Time to Invest in Gold?

When considering your investment strategy, it’s essential to align it with your personal goals. That said, there are several compelling reasons to consider adding gold to your portfolio at this moment, despite its elevated price.

Potential for Further Price Appreciation

Although gold is currently trading near $2,800 per ounce, many analysts believe there is still potential for prices to rise even more. Some forecasts suggest that gold could hit $3,000 per ounce by the end of the year or shortly thereafter. This optimistic outlook is supported by several factors:

• Institutional Demand: Central banks worldwide are increasingly purchasing gold, which strengthens demand and supports higher prices. In 2023, they acquired over 1,136 metric tons, the highest in over five decades.
• Limited Supply: The finite nature of gold means that as demand increases, prices are likely to rise due to scarcity. Many major gold mines are approaching depletion, adding pressure to the supply chain.
• Industrial Applications: Gold is increasingly utilized in various industries, including electronics and healthcare. This growing industrial demand further enhances its value, as new applications create additional reasons for businesses to seek gold.

By investing now, you may be setting yourself up to take advantage of potential price increases in the future, even if the current price seems steep. Delaying your purchase might result in missing out on a more favorable entry point.

Safeguarding Against Economic Uncertainty

While inflation has eased considerably in recent months, it’s not the only economic factor that could affect your investment strategy. The global economy is still grappling with various challenges, such as persistent geopolitical tensions and economic instability. Historically, gold has been viewed as a dependable safeguard against these uncertainties, making it a wise choice to invest in now. Here’s how it can shield you in a volatile economic landscape:

• Preserving Purchasing Power: Gold has historically maintained its value over time, helping investors protect their purchasing power in the face of inflation and currency fluctuations.
• Safe-Haven Asset: During periods of economic distress or geopolitical tensions, gold often sees a surge in demand, serving as a reliable store of value when other investments falter.
• High Liquidity: Gold is easily convertible to cash, offering financial flexibility. Whether through physical gold or gold ETFs, investors can liquidate their holdings quickly during economic downturns, ensuring access to necessary funds.

The Importance of Portfolio Diversification

One of the key reasons investors include gold in their portfolios is its unique relationship with other assets. Gold has historically demonstrated a low or negative correlation with stocks and bonds, meaning that when the stock market faces downturns, as it has recently, gold often remains stable. By adding gold to your portfolio now, even at current elevated prices, you’re incorporating an asset that doesn’t move in tandem with traditional investments. This helps to lower the overall risk and volatility of your portfolio, ensuring that even if other investments are underperforming, a portion of your wealth stays safeguarded.

The Key Takeaway

The recent rise in gold prices has led some investors to wonder if it’s the right moment to make a purchase. Although investing in any asset at its peak can feel risky, there are compelling reasons to consider adding gold to your portfolio, even at these higher prices. The possibility of further price increases, the necessity for a dependable safeguard against persistent economic instability, and the diversification advantages that gold offers all highlight its lasting worth as an investment.

Related: Should I invest in Gold?

THE UK’s largest parcel delivery firm have announced their final send dates to ensure Christmas gifts arrive in time.

Evri has warned to send Christmas gifts as early as possible and not leave it to the last minute.

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As the festive season approaches, Evri has announced its final send dates to ensure Christmas gifts reach loved ones in time.

With the busy Christmas period ahead, Evri is encouraging customers to send their parcels as early as possible to avoid any last-minute rush.

Thursday 19 December will be your last chance for courier collections.

The deadline for sending standard delivery parcels from ParcelShops will be on Friday 20 December by 11am.

And the final cut-off point for next-day parcels being drop off at a ParcelShop will be 11am on 21 December.

Additionally, in preparation for the busy Christmas season, Evri has extended its successful partnership with the Post Office.

Starting in November 2023, this partnership allowed customers to send Evri parcels from 2,000 branches for the first time in the Post Office’s long history.

By the end of October 2024, more than 3,200 Post Office branches will offer Evri parcel drop-off services – significantly expanding Evri’s network to over 16,800 locations across the UK.

This includes Post Offices, Tesco Express stores, lockers, and many independent convenience stores.

Depending on the weight and size of your parcel, you could send your parcels from as little as £2.62 with Evri.

Find your nearest Evri ParcelShop here.

It comes as Royal Mail is set to make a major change to second class postal services as part of a new shake-up.

Under an overhaul being considered by the industry watchdog, the postal service could be allowed to ditch Saturday deliveries for second class letters.

Regulator Ofcom, which has been consulting on the future of the universal postal service since January, said it is now focusing efforts on changes to the second class service while keeping first class deliveries six days a week.

Under the plans being considered, second class deliveries would not be made on Saturdays and would only be on alternate weekdays, but delivery times would remain unchanged at up to three working days.

Ofcom said no decision had been made and it continues to review the changes, with aims to publish a consultation in early 2025 and make a decision in the summer of next year.

Royal Mail has urged the Government and Ofcom to review its obligations, arguing that it is no longer workable or cost-effective, given the decline in addressed letter post.

In its submission to Ofcom in April, it proposed ditching Saturday deliveries for second class post and cutting the service to every other weekday.

Lindsey Fussell, Ofcom’s group director for networks and communications, said: “If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.

“So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.

“But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”

A NEW system could soon stop those annoying passengers who try to board the plane too early.

American Airlines is rolling out the new technology at a number of airports.

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Back in 2018, a study by London Stansted Airport and YouGov revealed the top 10 most annoying passenger habits at the airport.

Queue jumpers came out on top.

American Airlines’ new system will see a loud sound played for passengers who scan their boarding pass at the gate if they are boarding in the wrong group.

They will then be told by staff to wait for their group to be called.

Currently in place at Albuquerque International Sunport airport and Tucson International Airport, the airline will test it at others including Ronald Reagan Washington National Airport (DCA).

A spokesperson told Travel and Leisure: “We are in the early phase of testing new technology used during the boarding process.

“The new technology is designed to ensure customers receive the benefits of priority boarding with ease and helps improve the boarding experience by providing greater visibility into boarding progress for our team.”

And there is a reason airlines board from front to back too, and it’s to encourage passengers to buy more expensive tickets.

First boarding usually include those in first class and business class, as well as frequent flyers.

Despite this leading to huge queues in the aisle for economy passengers, experts have said the priority boarding can entice travellers to book tickets in a better class.

In theory, the best way to board a plane would be all of the window seats, followed by middle seat and aisle.

United Airlines currently uses the WILMA system, which stands for “window-middle-aisle”.

Otherwise there is also a boarding technique called the ‘Steffen method’.

This would implement the window-middle-aisle technique, but board all odd rows before even rows.

This means allowing more space between rows for passengers to put bags in overhead lockers and get into their seats.

But until all airlines roll this out, you can expect passengers to still crowd at the gates, especially on budget flights where there is limited overhead locker space.

This annoying airport habit is known as gate-licing – where passengers congregate at the boarding gate even if they are not called for boarding.

Brian Hart Hoffman, who was a flight attendant for eight years, told the Thrillist that crew “absolutely hate” gate lice.

He added: “There is no need for it and it absolutely hinders the flow of boarding.”