It’s not all gold that glitters, but the value of the precious metal has increased this year.

Gold prices have broken record after record, rising more than 30% in 2024 while hitting an all-time high of $2,748.23 this week.

The recent dramatic half-point interest rate cut by the US Federal Reserve, geopolitical tensions and economic uncertainty surrounding the US presidential election have created the conditions for a price surge. The rally was boosted by central banks in China, India and Turkey easing their reliance on the U.S. dollar, as well as retail giant Costco stockpiling one ounce bullion bars.

“Costco offering gold makes it as easy for a retail investor to buy gold as buying necessities,” said Joseph Cavatoni, senior market strategist for the World Gold Council. “Buying gold has never been so simple and accessible.”

Although gold, usually invested as a hedge against inflation, has performed well this year, there is a lot to know before investors jump into the gold rush.

Why hold gold?

Traders tend to turn to gold during periods of uncertainty, betting that its value will hold up better than other assets such as stocks, bonds and currencies if an economy faces a downturn.

“Between 2008 and 2012, the value of gold increased dramatically, as evidenced by the 101.1 percent rise in the gold Producer Price Index (PPI),” noted the United States Bureau of Labor Statistics.

“Gold does well in times of risk. If you look at market pullbacks or systemic events in the market, that’s when gold really shines,” Cavatoni said.

Concretely, how do you go about buying gold?

For a new gold buyer, Cavatoni says the first step is to think about your purpose for holding gold, whether to diversify your portfolio or as a safe haven.

From there, it is a matter of deciding whether the investment should be made using financial instruments such as gold-backed exchange-traded funds or purchasing it in physical form.

Both come with their own considerations. Delivery, storage and preservation, for example, are all factors in keeping gold in physical form.

Another consideration when purchasing gold in the retail market is how the price of gold bullion compares to the spot price of gold.

“You need to make sure that you’re comfortable with that price point — that you’re buying the investment that you want and not being offered something that might be a little more collectible,” Cavatoni said.

From banks to reputable brick-and-mortar and online retailers, gold buyers have options to invest. But Cavatoni advises having a “back-and-forth mentality” when purchasing physical gold, emphasizing the importance of the sales stage as much as the buying process.

“When it comes time to hold it for as long as you want and sell it, make sure you have a trusted partner that you can turn to and make that sale,” he said.

Other things to keep in mind are the purity of the gold and the form in which it comes. Products such as gold jewelry can command higher premiums depending on their design and artistic value, introducing further complexities.

On the other hand, gold-backed ETFs free consumers from the considerations that need to be made when purchasing physical gold.

“It’s like buying a stock,” Cavatoni said. “Nowadays you can do it commission-free on many platforms, so it’s very cheap to get in and out.”

But as with any investment, Cavatoni says acting with caution and doing your homework when purchasing gold in any form takes precedence over speed.

“If something seems too good to be true, then maybe it’s not true. Make sure you are careful before making an investment,” he said. “You don’t need to rush to own gold.”