The price of gold rose to $3,317 per ounce as of 9:05 a.m. ET today, marking a $1 gain from yesterday and a dramatic $1,006 increase compared to the same time last year. This significant surge has prompted many investors to reassess gold’s place in their portfolios amid ongoing economic turbulence.
Gold’s Performance Over Time
Here’s how the current price stacks up:
| Timeframe | Price | % Change |
|---|---|---|
| Yesterday | $3,316 | -0.03% |
| One month ago | $3,325 | +0.24% |
| One year ago | $2,311 | -30.33% |
While gold doesn’t move in lockstep with inflation, it has a long-standing reputation as a reliable asset over time. One favored method for long-term exposure is a gold IRA, which allows investors to sidestep the challenges of storing physical gold while potentially shielding their portfolios from market volatility.
Gold vs. Stocks: Historical Context
Gold is not without its caveats. In robust economic periods, equities often outperform. From 1971 through 2024, the stock market posted an average annual return of 10.7%, compared to gold’s 7.9%. Still, in times of crisis or inflation, gold’s stability makes it an attractive choice for risk-averse investors seeking to preserve value.
Understanding the Spot Gold Price
The spot price represents the real-time cost to buy or sell gold on the open market. It differs from futures contracts in that transactions are immediate, not scheduled for a later date.
When the futures price exceeds the spot price, it’s called contango, often seen in commodities with high storage costs. The opposite — when the futures price is lower — is known as backwardation.
Because spot prices respond to real-time demand and supply, they can fluctuate significantly throughout the day. Investors must be comfortable with this inherent volatility.
Price Spreads and Market Liquidity
A key concept in gold trading is the spread — the difference between the ask price (what you pay to buy) and the bid price (what you receive when selling). The bid is always lower than the ask.
Tighter spreads usually indicate a more liquid market with higher demand. Wider spreads may reflect instability or lower investor interest in the short term.
Common Ways to Invest in Gold
Gold can be acquired in several formats — not just shiny bars stacked in vaults. Popular methods include:
- Gold Bars (Bullion): Sold by weight and purity, with identifying marks from the manufacturer. Bars and rounds are a classic investment option.
- Gold Coins: Collectibles like the American Gold Eagle often carry premiums over bullion due to rarity and demand.
- Gold Jewelry: Though tangible and aesthetic, jewelry is priced above market value because of design and craftsmanship factors.
- Gold Futures: These contracts allow investors to speculate on future gold prices without handling physical gold.
- Gold Funds: ETFs and mutual funds tied to gold assets offer exposure without direct ownership. They’re easy to buy, sell, and rebalance.
"There is a great debate as to whether paper gold is as useful as the physical. From a financial advisor’s viewpoint, it is much easier to rebalance a client’s allocation of gold if it is owned as an exchange-traded fund (ETF)." — James Taska, Fee-Based Financial Advisor
Current Precious Metals Snapshot
As of 9:05 a.m. ET today, here are the going rates for popular precious metals:
| Metal | Price per Ounce |
|---|---|
| Gold | $3,317 |
| Silver | $36 |
| Platinum | $1,196 |
| Palladium | $1,067 |
Silver tends to be more volatile due to its widespread use in industrial applications. Platinum and palladium exhibit similar behaviors, offering potential portfolio diversification — albeit with more pronounced price swings than gold.
Is Now the Right Time to Buy Gold?
The decision to invest in gold should be based on individual risk tolerance and investment goals. In today’s market, however, the appeal is clear: gold has risen over 25% since the start of the year, fueled by inflation and geopolitical instability.
Adding gold to a diversified portfolio may provide the protection needed against a volatile market environment. Whether through a retirement account or direct trading, gold remains a practical hedge for both seasoned and first-time investors.
Final Thoughts
With the U.S. economy facing prolonged inflation and market instability, gold continues to serve as a reliable buffer against uncertainty. Its diverse acquisition options — from IRAs to ETFs and physical bullion — make it accessible for a wide range of investors. While gold may not outperform stocks over long stretches, it offers a proven store of value during turbulent times.
