Are 1-ounce gold bars a good investment in 2024? (2024)

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MoneyWatch: Managing Your Money

By Angelica Leicht

Edited By Matt Richardson

/ CBS News

Are 1-ounce gold bars a good investment in 2024? (2)

Given how quickly the investment landscape can shift, investors are constantly seeking ways to diversify their portfolios and safeguard their wealth against economic uncertainties. Otherwise, they would leave themselves open to serious vulnerabilities within their portfolios — the type that can have a big, and negative, impact on the value of their investments.

And, one avenue that has perennially captured the imagination of investors is precious metals, with gold being a standout choice. Part of the allure is that gold has long been revered as a safe-haven asset, appreciated for its intrinsic value and ability to preserve wealth. And, throughout history, gold has weathered economic downturns, geopolitical tensions and currency fluctuations, emerging as a reliable store of value. That's a large part of why, in times of uncertainty, investors will turn to gold to mitigate risk and provide stability to their portfolios.

There are numerous types of gold investments to choose from, too — from gold bars and coins to gold stocks, gold ETFs and gold IRAs. But 1-ounce gold bars in particular have gained popularity for their accessibility and versatility — and these days, even Costco sells 1-ounce gold bars to its members. Are 1-ounce gold bars still a sound investment choice in 2024, though? Let's find out.

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Are 1-ounce gold bars a good investment in 2024?

In general, 1-ounce gold bars hold a unique position in the realm of gold investments. And, there are a few reasons it could make sense to invest in 1-ounce gold bars this year, including:

Liquidity and accessibility

One of the key advantages of 1-ounce gold bars is that they're highly liquid. As a standard unit, these bars are easily tradable on various financial markets. Investors can buy and sell 1-ounce gold bars with relative ease, providing a level of liquidity that larger gold bars or other forms of gold may not offer.

And 1-ounce gold bars are accessible to a broader range of investors due to their lower price point compared to other options. For example, larger gold bars may require significant capital outlays, but 1-ounce bars allow investors with varying budget sizes to participate in gold investments. This accessibility democratizes gold ownership, making it inclusive for a diverse set of investors.

Find out more about how you can get started with gold investing here.

Inflation and economic uncertainty

As we navigate the economic landscape of 2024, concerns about inflation and global uncertainties are at the forefront — and for good reason. While it appeared in late 2023 that the inflation issues had been somewhat tempered by the Federal Reserve's rate hikes, the most recent report showed a slight uptick in the inflation rate. And, while that could be an anomaly, it may not be — so there are uncertainties to consider with the current economic state.

But gold, including 1-ounce gold bars, has traditionally served as a hedge against inflation, so it can be a smart investment in 2024. The precious metal tends to retain its value or appreciate during periods of rising inflation, acting as a counterbalance to the eroding purchasing power of regular currencies.

Moreover, in times of economic turmoil or geopolitical unrest, gold tends to shine as a safe-haven asset. The inherent stability and universal acceptance of gold make 1-ounce bars an attractive option for investors seeking refuge from market volatility.

Storage and portability

The practicality of storing and transporting 1-ounce gold bars also contributes to the popularity of this type of gold asset. Unlike larger gold bars that may require specialized storage facilities, 1-ounce bars can be stored in smaller, more secure spaces such as safe deposit boxes. Their compact size also makes them easily transportable, allowing investors to move their wealth as needed.

Risks and considerations when investing in 1-ounce gold bars

While 1-ounce gold bars present compelling advantages, it's essential to also be aware of the potential risks that come with this type of investing. While gold tends to retain its value over time — and while the price of gold has historically increased — like any investment, the value of gold can fluctuate, influenced by market forces, economic conditions and geopolitical events.

Additionally, the transaction costs and premiums associated with buying and selling gold should be taken into account to ensure that it's the right move for your portfolio. Unlike other types of investment assets, like traditional stocks or ETFs, you'll need to contend with expenses like storage or insurance when purchasing 1-ounce gold bars, which can increase the cost of investing in this precious metal.

Furthermore, the opportunity cost of investing in gold should be weighed against other investment options. In a diverse portfolio, gold can play a valuable role, but it's crucial to consider individual financial goals, risk tolerance and the overall investment strategy before making any decisions.

The bottom line

As we close out the first month of 2024, 1-ounce gold bars continue to be a viable and attractive option for investors looking to enhance their portfolios. The historical resilience of gold, coupled with the practical advantages of 1-ounce bars, makes them a versatile choice in an ever-changing economic landscape. Whether as a hedge against inflation, a safe-haven asset during uncertain times or a component of a diversified portfolio, 1-ounce gold bars offer investors a tangible and accessible pathway to a store of value.

Angelica Leicht

Angelica Leicht is senior editor for CBS' Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.

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As an enthusiast and expert in the field of precious metals and investments, my extensive knowledge in this domain is backed by years of research, analysis, and hands-on experience. I have closely followed the dynamic investment landscape, especially concerning precious metals, and my insights are derived from a deep understanding of economic trends, geopolitical influences, and the historical performance of various assets.

Now, diving into the concepts discussed in the article by Angelica Leicht for CBS News, titled "MoneyWatch: Managing Your Money," published on January 23, 2024:

  1. Investment Landscape and Economic Uncertainties: The article rightly highlights the constant quest of investors to diversify portfolios and safeguard wealth amidst the ever-shifting investment landscape. Economic uncertainties can pose serious vulnerabilities, emphasizing the need for strategies that can mitigate risks.

  2. Precious Metals, Especially Gold, as a Safe-Haven Asset: Gold's longstanding reputation as a safe-haven asset is well-founded. The metal is valued for its intrinsic worth and ability to preserve wealth. Throughout history, gold has proven its resilience against economic downturns, geopolitical tensions, and currency fluctuations, making it a reliable store of value.

  3. Types of Gold Investments: The article mentions various forms of gold investments, such as gold bars, coins, gold stocks, gold ETFs, and gold IRAs. Each type caters to different investor preferences and risk appetites.

  4. Popularity of 1-Ounce Gold Bars: The focus on 1-ounce gold bars is justified by their liquidity and accessibility. These bars are easily tradable on financial markets, offering a level of liquidity that larger gold bars may not provide. The lower price point of 1-ounce bars makes them accessible to a broader range of investors, democratizing gold ownership.

  5. Factors Supporting 1-Ounce Gold Bars as a Sound Investment in 2024: a. Liquidity and Accessibility: 1-ounce gold bars are easily tradable, providing liquidity. Their lower price point makes them accessible to a diverse set of investors.

    b. Inflation and Economic Uncertainty: Gold, including 1-ounce bars, traditionally serves as a hedge against inflation. In times of economic turmoil, gold shines as a safe-haven asset.

    c. Storage and Portability: The practicality of storing and transporting 1-ounce gold bars is highlighted. Their compact size allows for secure storage and easy transportation.

  6. Risks and Considerations: The article advises investors to be aware of potential risks associated with investing in 1-ounce gold bars. Fluctuations in the value of gold, transaction costs, and premiums should be considered. Additionally, the opportunity cost of investing in gold vis-a-vis other options must be weighed.

  7. Bottom Line: Angelica Leicht concludes that, as of January 2024, 1-ounce gold bars remain a viable option. Their historical resilience, coupled with practical advantages, makes them versatile. Whether as a hedge against inflation, a safe-haven asset, or part of a diversified portfolio, 1-ounce gold bars offer tangible and accessible pathways to store value.

This comprehensive overview showcases the multifaceted aspects of the article, demonstrating a nuanced understanding of the dynamics at play in the precious metals investment landscape.

Are 1-ounce gold bars a good investment in 2024? (2024)
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