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The price of gold today, as of 8:17 am ET, was $2,568 per ounce. That’s up 0.38% from yesterday’s gold price of $2,558.
Compared to last week, the price of gold is up 2.98%, and it’s up 5.32% from one month ago.
The 52-week gold price high is $2,526, while the 52-week gold price low is $2,364.
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Gold Prices Today
Gold Price Chart
How To Invest in Gold
Many investors consider gold to be the ultimate safe-haven asset. When the prices of stocks, bonds and real estate drop sharply, gold may hold its value—and can even appreciate as nervous investors rush in to buy.
Owning gold is also a way to add diversification to your investment portfolio. When you hold a diversified mix of different assets, including gold, varying returns can protect the value of your investments.
There are many ways to invest in gold. Each has its own pros and cons.
- Gold bars. More commonly known as bullion, gold bars are a popular choice for buying gold. Bullion is typically sold by gram or ounce. Purity, manufacturer and weight should be stamped on the face of the bar.
- Gold coins. The American Gold Eagle and the Canadian Maple Leaf are popular collectibles that command a premium over what you would for the same amount of gold in the form of bullion.
- Gold jewelry. Like gold coins, you’ll probably be paying extra for gold when you buy it in the form of jewelry—a premium that could be anywhere from 20% to 300%, depending on the manufacturer.
- Gold stocks. Buying the stocks of gold mining or processing companies is another way to invest in the yellow metal. You don’t get to own physical gold, but you do get exposure to the rise and fall of the price of gold in the market.
- Gold futures contracts. Futures are derivative contracts where a buyer agrees to purchase a set quantity of gold at a predetermined price on a future date. Gold futures let sophisticated investors speculate on prices and hedge their wider portfolios, providing exposure without the hassle of handling physical metal.
- Gold funds. There are a range of different mutual funds and exchange-traded funds (ETFs) that provide exposure to gold. They may invest in gold stocks, or they may trade gold derivatives in the options and futures markets.
Should You Invest in Gold?
You should invest in gold if you’re looking to hedge against risk or diversify your portfolio. Gold is not your first choice to earn long-term appreciation.
Over the past five years, the price of gold has appreciated approximately 36% while the total return of the S&P 500 has been 60%.
Gold prices can be extremely volatile, and that means that gold isn’t an entirely stable investment. In fact, you can easily craft a well-diversified investment portfolio entirely without gold.
Is Gold an Inflation Hedge?
Studies have found that gold may be an effective inflation hedge, but only over extremely long periods of time, measured in decades or centuries.
Over shorter time periods, the inflation-adjusted price of gold fluctuates dramatically, making it a poor near-term hedge for inflation.
From 1980 to 1984, annual inflation as measured by the consumer price index averaged 6.5%, but gold prices fell by an annual average of 10% over the same period. Gold’s returns not only fell short of inflation, but also underperformed real estate, commodities and the S&P 500.
In April 2021, annual CPI inflation hit 4.2%, its first annualized gain above 4% since 2008. Price growth accelerated in 2022, with a full-year CPI rate of +6.5%. But average gold prices were flat to down slightly in 2022, providing no hedge against inflation.
*The gold price data above is provided by Zyla Labs, which sources asset price data from a wide range of sources. This gold price represents an average of spot gold prices on several leading metals exchanges. Prices are updated every business day.
Frequently Asked Questions (FAQs)
What is the best way to start buying gold?
Buying shares of a gold ETF is the easiest way to get exposure to gold for beginning investors. Owning physical gold—bars and coins—involves additional costs and risks, while shares of individual gold stocks can also be risky.
How can I buy physical gold at the spot price?
The spot price for gold is the current market price for immediate delivery of gold. This price changes constantly as market participants all over the world trade gold in a wide range of different markets. Online and brick-and-mortar gold vendors use the spot price as a handy reference, but they typically charge a spread fee on top of the spot price
What determines the spot gold price?
Countless factors go into determining the current spot price of gold at any moment in time. The supply of new gold, demand of gold bullion and currency fluctuations all play a role, not to mention action in the gold futures and options markets.
Why does buying gold cost more than the spot price?
Vendors add fees and premiums to their gold prices, which is why you cannot really buy physical gold at the current spot price for gold. These additional costs compensate vendors for acquiring, storing and insuring gold, not to mention funding their profit margin.
