Is Gold Too Expensive For Investors?

Dave Russell, CEO, GoldCore Ltd

In March, the gold price surpassed €2,000 for the first time. It has left many wondering if it is now too expensive. 

First, we need to ask if gold is a worthy investment? Yes, it is. Gold’s ability to preserve investors’ wealth when other assets falter, make it an attractive option for investors seeking stability. Gold is a great portfolio diversifier. When it comes to stock market movements, the presence of physical gold in your portfolio enhances overall risk management strategies. 

So then you need to ask if gold is worth buying at this price? We at Goldcore believe it is. None of the reasons that have brought it to this all-time-high have gone away. None of the economic drivers, the geopolitical tensions, inflation levels, and global debt levels i.e. all the reasons that got us here, are starting to improve.

In short, the decision to purchase gold should not hinge on its current price level. Instead, it should be viewed as a strategic asset allocation to mitigate risks and preserve wealth over time. 

In today’s economic climate, the case for physical gold investment is as compelling as ever. Despite fluctuations in gold prices over recent decades, the current upward trend suggests continued support for its long-term value. Events such as the global financial crisis, the COVID-19 pandemic, and geopolitical tensions have bolstered gold’s appeal. The policies that were put in place to respond to these crises came at a huge cost, all of which we are feeling today. In turn they have fuelled concerns about economic and global stability. This is why slowly but surely more investors and central banks alike are turning to gold. 

But how can investors afford it? Cost averaging, whereby investors commit to regular gold purchases regardless of short-term price fluctuations, offers savers a disciplined, long-term approach to investing and minimises market timing risks. 

Incorporating gold into one’s investment strategy provides a crucial safeguard against economic upheaval and ensures long-term financial resilience.