Gold (GC=F) hovered at an all-time high around $2,700 an ounce on Wednesday and silver traded near a 12-year high as the US presidential election between Kamala Harris and Donald Trump was just days away and most investors expected another rate cut at the next Federal Reserve meeting on November 7.
This week, Goldman Sachs analysts predicted that gold will rise about 10% to $3,000 by December 2025 due to demand for physical gold from central banks, investors pouring into exchange-traded funds (ETFs) backed by physical gold, and speculative positioning.
“History shows that gold positioning tends to rise when uncertainty and investors seek safe havens,” wrote Lina Thomas and Daan Struyven of Goldman Sachs.
Private investors looking to get in on the precious metals action have several options, from owning physical gold to investing in mining companies. Here are some:
“For both gold and silver, buying physical assets is the safest and most reliable way,” said Alex Ebkarian, co-founder and COO of Wedding gold.
Ebkarian said investors should have a medium- to long-term outlook for their return on their investment, and they should also understand that there are storage and transportation costs if the gold is stored away from home, such as in a secure depository. There are also upfront premium costs paid during the acquisition.
“When it comes to investing in bars, I recommend starting with the 1 oz with well-known brands like PAMP Suisse and Valcambi,” he said.
Physical purchases can be made at local dealers, online platforms and even the big-box retailer Costco (COST), although the latter doesn’t buy anything back from customers.
Buying coins also comes at a premium – from the most common to the rarest collectibles.
“When it comes to coins, it’s best to focus on products from the four largest mints in the world: US Mint, the Royal Canadian Mint, the Perth Mint and the Royal Mint. They produce investment grade coins that are highly sought after. and extremely liquid. Diversifying your investments gives you more flexibility and options in the future,” said Ebkarian.
The most popular for both gold and silver is the 1 oz. American Eagle.
“American Eagle 1 oz. coins are the most liquid, traded and recognized bullion coins in the world and are in high demand,” said Scott Travers, editor-in-chief of MINT Magazine and author of the Coin Collector’s Survival Manual.
Travers said consumers should make sure coins are verified through one of the industry’s three major grading agencies, or purchase a tester to verify them.
