The price of gold surged this week past a record-breaking $2,720 per troy ounce, fueling widespread interest in the precious metal as a hedge against economic uncertainty.
The current surge shows no signs of slowing down, with many analysts predicting further increases into next year.
The London Bullion Market Association (LBMA) gold forecast suggests the price could reach as high as $2,941 per troy ounce within 12 months. While Goldman Sachs has issued a more bullish outlook, expecting gold to rise to $3,000 by early 2025.
Global rate cuts, central bank gold purchases, and geopolitical tensions support upward momentum.
Technical analysts note that gold may be overbought, and temporary pullbacks are likely. Yet, the long-term outlook remains strong.
Gold Bar Premiums
Premiums tend to rise along with gold prices. However, some investment-grade gold bar premiums have decreased slightly recently.
Costco’s foray into the gold market has changed the game for investors and forced other dealers to adjust their pricing strategies.
As the spot gold price hits all-time highs, investors can now buy gold bars at slightly reduced premiums.
For those hesitant to enter the market at these price levels, fractional gold bars in various gram weights provide a more favorable entry point.
Why Fractional Gold Gram Bars Are an Attractive Alternative
While lower premiums on gold bars are an unexpected development, with prices exceeding $2,700, not all investors can afford a full ounce of gold.
Fractional gold gram bars are a more affordable entry into the gold market. In addition to the 20 gram size, they are also available in 10 grams, 5 grams, or 1 gram.
Fractional gold bars provide a lower-cost option for investors without needing large sums of money upfront.
Although fractional bars have higher premiums per ounce, they allow investors to build their gold holdings incrementally.
Because they are smaller, they offer greater liquidity and can be quickly sold when needed.
Fractional gold bars offer an affordable and flexible option for investors looking a more cheaper alternatives to full 1 oz bars.
With analysts predicting further gold price increases, now may be an opportune time to consider adding gold to your portfolio.