Gold (GC=F) was hovering at a record high around $2,700 per ounce on Wednesday and silver was trading near 12-year highs, with the US presidential election between Kamala Harris and Donald Trump just days away and most investors expecting another rate cut at the Federal Reserve’s next meeting on Nov. 7.
This week, Goldman Sachs analysts predicted gold will rise about 10% to $3,000 by December 2025 due to physical gold demand from central banks, investors pouring into exchange-traded funds (ETFs) backed by physical gold, and speculative positioning.
“History suggests that gold positioning tends to rise with uncertainty and when investors seek safe havens,” wrote Goldman Sachs’ Lina Thomas and Daan Struyven.
Retail investors wanting to get in on the precious metals action have several options, from owning physical gold to investing in mining companies. Here are some:
“For gold, as well as silver, buying the physical asset is the safest and most reliable way,” said Alex Ebkarian, co-founder and COO of Allegiance Gold.
Ebkarian said investors should have a mid- to long-term outlook for their return on investment, as well as understand there are storage and transportation fees if the gold is stored outside the home such as at a secure depository. There is also an upfront premium cost paid during acquisition.
“When it comes to investing in bars, I suggest starting at the 1 oz with well-known brands such as PAMP Suisse, Valcambi,” he said.
Physical purchases can be made from local dealers, online platforms, and even big box retailer Costco (COST), though the latter doesn’t purchase any back from customers.
Buying coins also carries a premium — from the most common ones to the rarest collectibles.
“When it comes to coins, it is best to focus on products from the world’s top four sovereign mints: 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 holdings provides 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. Those are in great demand,” said Scott Travers, executive editor of COINage 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 main three grading agencies or buy a tester to verify them.