Gold is one of the oldest forms of currency, and it’s still accepted as payment for goods and services in many U.S. states today.
But you probably won’t see anyone trading the shiny yellow metal for groceries or gas, given its steadily rising value
In fact, gold hit a record high of $5,418 per ounce in January after benefiting from a series of political and economic tailwinds last year. But it has since plummeted by 27%, trading recently below $4,000 per ounce. While conditions favor more upside from here, some headwinds on the horizon could weigh on returns.
Buying physical metal is the surest way to profit from a potential rise in gold’s value, but many investors opt for exchange-traded funds (ETFs) like the SPDR Gold Trust (NYSEMKT: GLD), which can be a more convenient alternative. But no matter which method investors prefer, is now a good time to buy the shiny yellow metal? Conditions favor more upside in gold, but there’s a catch Gold soared by 64% last year, outperforming the stock market and even Bitcoin.