June gold futures (GC=F) opened at $4,486.60 this morning, down 0.5% from Tuesday’s closing price of $4,511.20. The price of gold at 6:15 am ET this morning rose slightly to $4,488.90.
July silver futures (SI=F) opened at $74.08 an ounce on Wednesday, down 1.4% from yesterday’s closing price of $75.15. The price of silver rose slightly at 6:15 am ET to $75.86.
Today’s opening price for gold is the lowest we have seen since late March. Before that, it was the lowest opening price since January 9. The opening price of silver this morning is the lowest since May 1st. Before that, it is the lowest opening price since April 1.
The president’s comments continue to influence markets, which are desperate for any sign of a resolution with Iran that will begin to ease concerns about inflation in the United States and around the world. President Trump threatened Iran with a “big hit” in the coming days if negotiations do not move forward. At the same time, the president also said the war could end “very quickly.”
Stay tuned for more: Households are affected by inflation: here’s how to manage it
Current price of gold.
The opening price of gold futures on Wednesday was down 0.5% from Tuesday’s closing price. Here’s how the opening price of gold has changed compared to the past week, month and year:
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A week ago: -5%
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A month ago: -6.4%
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One year ago: +39.4%
On January 29, gold’s annual gain was 95.6%.
24/7 Gold Price Tracking: Don’t forget that you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.
Do you want to learn more about The current best performing companies in the gold industry.? Explore a list of the best performing companies in the gold industry using Yahoo Finance Screener. You can create your own evaluators with more than 150 different evaluation criteria.
Current price of silver.
The opening price of silver futures on Wednesday was down 1.4% from Tuesday’s closing price. Here is how the opening price of silver has changed compared to the past week, month and year:
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A week ago: -14.8%
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A month ago: -6.8%
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One year ago: +130.6%
More information: How to invest in silver: a beginner’s guide
Ways to invest in gold
There are different ways to invest in gold and each has its pros and cons. Four common options are:
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physical gold
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Gold Mining Stocks
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gold ETF
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Gold futures
physical gold
Physical gold includes jewelry, gold bars, and gold coins. Some prefer physical gold over other forms because it is tangible and easy to purchase. You can easily buy a gold necklace at the mall or gold bars at Costco (COST).
Intrigued by Costco’s precious metals offering? Read more here for key precious metals investing considerations, the details of Costco selection, and tips for managing your new investment.
Pros and cons of physical gold
The advantages of physical gold include:
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Easily accessible for use: If you keep your physical gold at home, it will be easily available to use as a medium of exchange in case of a financial emergency.
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No additional volatility or ongoing fees: If you own the gold yourself, “you eliminate counterparty risk and storage fees or expense ratios,” explained Brett Elliott, director of content and SEO at American Precious Metals Exchange (APMEX). You also avoid the additional trading volatility associated with gold mining stocks, as explained below.
More information: Dive deeper into the gold sector
The disadvantages of physical gold include:
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Risk of theft or loss: Physical gold must be properly insured. You can store it at home for free or invest in third-party storage and insurance. Remember that fees associated with storage or insurance dilute your profits.
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Lower liquidity: Physical gold is less liquid (i.e. harder to sell quickly) than stocks or ETFs. Additionally, if you do not use gold as a medium of exchange, you must find a dealer and pay a margin on the sale.
More information: How to invest in gold in 4 steps
Gold Mining Stocks
Gold mining stocks are equity positions in gold mining companies. They can be volatile because their profits are tied to gold prices, and these companies are highly exposed to “geopolitical risks and management risks,” according to Vince Stanzione, CEO and founder of financial publisher First Information. To manage volatility, many investors prefer diversified gold mining funds over individual mining stocks.
Pros and cons of gold mining stocks
Advantages of gold mining stocks include:
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Greater liquidity: Large-cap gold mining stocks like Barrick Gold Corporation (B) and Franco-Nevada Corporation (FNV) generally enjoy a tight bid-ask spread, which is a sign of liquidity. The bid-ask spread is the difference between what buyers will pay and what sellers will accept.
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No storage requirements: Stocks live in your brokerage account and do not consume physical space. In normal times, this is an advantage. In an economic catastrophe, this could be a disadvantage if brokers or the stock market temporarily close.
More information: The best performing companies in the gold industry
The disadvantages of owning gold mining stocks include:
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Higher volatility: “Investing in gold through gold mining companies adds another layer of risk,” explained Thomas Winmill, portfolio manager at mutual fund company Midas Funds. From 2000 to 2020, gold mining stocks rose and fell faster than spot gold prices. In recent years, gold mining stocks have trended lower as spot gold prices have gained value.
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No use as a medium of exchange: Gold mining stocks may appreciate, but they have no direct utility as a medium of exchange.
More information: Who decides how much gold is worth? How gold prices are determined.
gold ETF
Gold ETFs are funds that track the price of gold. They can invest in physical gold stores, gold mining stocks, gold futures, or some combination of these. The largest gold ETF in terms of total assets is SPDR Gold Shares (GLD), which is backed by physical gold stored in vaults.
Pros and cons of gold ETFs
Advantages of gold ETFs include:
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Easy to store: Like gold mining stocks, ETF shares are digital assets with no storage requirements.
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Greater liquidity: Shares of the most popular gold ETFs, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), are heavily traded. Constant demand makes them easy to sell.
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Directly linked to gold prices: ETFs backed by physical gold track the spot price of gold, which is typically less volatile than gold mining stocks or gold mining ETFs.
More information: Gold IRA: Benefits, Risks, and How It’s Different from a Traditional IRA
Disadvantages of gold ETFs include:
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Fund fees: Funds charge fees that dilute returns over time. For context, SPDR Gold Shares’ expense ratio is 0.40%. This translates to $4 in annual fees for every $1,000 invested.
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No use as a medium of exchange: As with gold mining stocks, you probably can’t use ETF shares to trade food in an economic emergency.
Gold futures
Gold futures are standardized contracts to buy gold at a future date at a specific price. Contracts typically represent 100 troy ounces. According to Stanzione, among gold investment options, gold futures carry “the greatest risk and are best left to professional traders.”
More information: Alternatives to gold? How to invest in silver, platinum and palladium.
Pros and cons of gold futures
The advantages of gold futures are:
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Leverage: You can control a large amount of gold with a low capital outlay.
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Convenience: You don’t need to store physical gold to make money from price changes.
The disadvantages of investing in gold futures are:
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Risk: Leverage amplifies profits and losses. This is always risky, but especially when it comes to an unpredictable asset like gold.
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Complexity: The complexity of futures contracts can be daunting for many retail investors.
More information: Are you thinking of buying gold? Here’s what investors should keep in mind.
Gold price and silver price charts.
Whether you’re following the price of gold and silver from last month or last year, the gold and silver price charts below show the journey of the precious metals’ value so far this year.
More silver coverage from the Yahoo Finance team: