2023 has been a year that has had several different topics dominate the minds of investors and financial advisors. From interest rates to recession risks to active management to artificial intelligence, advisors and investors have had quite the challenge in figuring out where they should put their focus within the markets.
As we look to 2024, many of the same topics still sit at the forefront of investors’ minds as they try to filter through all the information to determine where they will put their assets in the new year. Despite all the different narratives surrounding the markets this year, one asset has swiftly fallen under the radar: gold. However, as the new year continues to inch closer, experts are calling for gold to reach record highs in 2024, indicating it may be time for advisors to begin paying attention to the precious metal.
In this article, we will explore how gold has performed throughout 2023 and share more information on what experts expect from gold in 2024.
Gold’s 2023 Performance
The price of physical gold in the first half of the year had an up-and-down performance in terms of growth in its price. According to Kitco, the precious metal started the year being valued at $1831/oz and then saw a slow rise until it reached the precious metal’s mid-year high, where it crossed the $2000/oz threshold. However, once it reached that high point, it had several months of a consistent drop in its price, where it dipped back down to $1830/oz in early October, according to Kitco.
As Q4 continued, the precious metal has seen a significant increase in its price, even crossing $2100/oz at one point in early December. Precious metals in the present day have been fluctuating in the $2025/oz range, which still ranks among some of the top prices the precious metals have seen YTD.
Why 2024 Could be Gold’s Year
The $2000/oz price range is where many experts expect the precious metal to stay for most of 2024. In a recent article published by Kitco author Neils Christensen who spoke with George Milling-Stanley, the chief gold strategist at State Street Global Advisors, and when asked for his expectations for gold in 2024, he shared that he believes that gold could reach all-time highs in the new year.
Milling-Stanley then revealed that he and his firm believe there is “a 50% chance of gold trading between $1,950 and $2,200 an ounce next year.” If these predictions are correct, the precious metal would sit at or near its all-time highs.
Milling-Stanley and State Street Global advisors aren’t the only experts in the industry saying this, as several other individuals are making similar predictions for the precious metal.
In a November ETF Prime episode, VettaFi’s Vice Chairman, Tom Lydon, said, “The story for gold is strong.” Lydon shared that investors could see a nice pickup from gold in the new year.
How Can Advisors Gain Direct Exposure in the New Year?
There are several different ways that advisors can gain direct exposure to the precious metal, and one possible way to do so is by investing in an ETF that tracks its price. There are many options on the market, but perhaps one of the most unique gold funds is the VanEck Merk Gold Trust (OUNZ). Like many other gold ETFs on the market, the nearly decade-old fun tracks the LBMA Gold Price PM Index. However, OUNZ is unique among all other gold ETFs because it allows shareholders to exchange their shares in the fund for actual gold.
Ultimately, as we head into the new year with a significant amount of uncertainty still at the forefront of investors’ minds, we may see more of them seek ways to protect and diversify their wealth with gold exposure, especially with experts calling for gold to possibly have a record year in 2024.
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