President Trump took to Truth Social on September 28 to reveal a video of new decorations he has installed in the Oval Office, including 24 karat gold accents. As Newsweek notes, this decor is more in line with his properties Trump Tower and Mar-a-Lago, and less in keeping with the history of 1600 Pennsylvania Avenue. (1)
“Some of the highest quality 24 Karat Gold used in the Oval Office and Cabinet Room of the White House. Foreign Leaders, and everyone else, “freak out” when they see the quality and beauty. Best Oval Office ever, in terms of success and look!!!” Trump wrote in his post, accompanied by a video of some of the accents laid on a table, pre-installation. (2)
While there are no reports on the price of this latest layer of gilding, it likely cost a pretty penny: The price of gold has just hit its highest level ever, $3,833.37 per ounce. (3)
With gold such a hot commodity, many investors are wondering if they’ve missed the boat on investing in this previous asset. Here’s what you need to know about gold, why it’s historically such a good bet, especially when the stock market gets rocky, and how to know if now is the time to buy.
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Trump’s gilded age
The president announced further plans to create a new ballroom in the White House, to the tune of $200 million. The funds are said to be supplied by unspecified donors, according to reports from The Guardian, and the decor, per images released by the White House, will be gilded in the extreme. (4)
“They’ve wanted a ballroom at the White House for more than 150 years, but there’s never been a president that was good at ballrooms. I’m good at building things and we’re going to build quickly and on time. It’ll be beautiful, top, top of the line,” the President said in an interview. (5)
While the changes to the Oval Office have included moving historical pieces from the White House collection into the main chamber and the addition of several new gold frames for presidential portraits, the gold overload and the new ballroom are just some of the major construction underway in The People’s House: huge new flagpoles on the north and south lawns, a portrait gallery named the “Presidential Walk of Fame” and paving over the historic rose garden are just some of the major changes that have been carried out in recent months.
These projects are costly, and come at a time when ordinary Americans are struggling with their finances and with rising costs due to inflation and tariffs. So can gold help the average saver to better prepare for retirement? Here’s our take.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
A safe haven for investors?
Gold performs well when interest rates are low, and during times of uncertainty, which has contributed to its 43% jump in price so far this year. (3)
Many investors predicted gold’s major lift, including Robert Kiyosaki, author of “Rich Dad, Poor Dad.” The millionaire investor touted gold’s history of growth when markets are sluggish, which is borne out by the data: since 1971, when the U.S. went off the gold standard, gold prices have grown 8,861.26%. In the last 25 years, the returns have been 1,346.67%. (6)
Many investors have touted the importance of gold in a diversified long-term investment portfolio before now. Gold stores its value, which leads many to say that it’s inflation fighting — the dollar, on the other hand, is subject to market fluctuations and erosion of value from inflation. However, gold has disappointed investors in different periods, and it’s by no means recommended as a majority or basis of one’s investments. Like any investment, gold has its risks, even if it’s considered ‘safe’ over the long term.
How to invest in gold
Investors can hold gold directly as physical assets, or can invest indirectly through stocks. While the President clearly thinks physical gold is the way to go, for average investors, indirect exposure can be the most beneficial. Inexperienced gold investors should also be wary of high-pressure sales tactics or promises of guaranteed returns. Gold investment schemes are fairly common, and therefore buying shares or physical assets through well-known, traditional channels is best.
There are a number of ways to invest in gold, though some have more drawbacks than others:
Gold bullion, including coins, bars and other forms of gold are tricky for individual investors. Storage is a problem, as it’s not the kind of asset you can safely keep in the garage. It’s also illiquid, making it costly to buy and sell, unless you invest in smaller forms like coins. Coins from private dealers usually cost about 1% to 5% above their underlying value.
Gold ETFs and mutual funds are a better bet for newbie investors, as you can buy and sell ETFs just like stocks. Each share of a gold ETF represents a fixed amount of gold, such as one-tenth of an ounce. The costs are low, often around 0.61% for ETFs, and the price of entry is much less than physical gold. For mutual funds, most investors will find that the large groups will commonly hold some value in gold already. However, there are a few funds that invest only in gold-related products, such as the indexes of mining companies, or are tied directly to gold prices. Of course, mutual funds are more expensive to invest in due to their active management, but they are a good option for those who are looking for a near-guaranteed return.
Gold mining companies can also be a good bet, though with individual stock picking its key to do lots of research before you buy. Gold companies have one great advantage in that they can also still show a profit when gold prices aren’t performing by hedging against a fall in gold prices as a normal part of their business.
Finally, gold jewelry can be a good investment, as about 49% of global gold production is intended for jewelry. However, the prices for these pieces aren’t simply set by the price of gold — you’re paying for the design, the prestige of the company, and other factors. While the price of gold may go up, the cost of the piece — up to 300% or more over the underlying value of the gold — may make any gains an impossibility. As with collecting any kind of fine art, you have to do your research and know the market well in order to turn a profit.
Consulting with a qualified financial advisor is best before buying any new kind of investment, no matter how established it is. Investing in gold depends on your financial goals, and your risk tolerance for ups and downs — no matter how rosy the market may look.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); Truth Social (2); Reuters (3); The Guardian (4); X (5); Investopedia (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.