Gold prices hit a record high on Friday, with spot prices reaching just over $2,400 an ounce. A spot price is the value at which an asset can be immediately bought or sold.
The price of gold peaked at $2,424.32 an ounce, according to Reuters, before dipping slightly later in the session. The spot price at the time of writing sits just over $2,400 once again.
Gold prices have been climbing steadily and are poised to hit their fourth consecutive week of gains. Experts are citing geopolitical risks as a factor in the increasing price of gold.
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
Initial purchase requirements
Minimum purchase requirement of $2,000
Account minimums
Minimum account balance of $2,000
Fees
$50 one-time set-up fee
Annual $100 Maintenance fee
Storage Fees of $100 or $150 per year, depending on the type of storage chosen
Terms apply.
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
Initial Purchase Requirements
Minimum initial purchase requirement of $10,000
Account Minimums
Minimum account balance of $10,000
Fees
Account Set Up Fee: $50
Storage/Insurance: $100
Management Fees: $100
Terms apply.
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 are currently sitting at just over $2,400.
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
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
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
Bonus
None
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
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Terms apply.
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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.
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