4 big gold investing mistakes to avoid this November

Before investing in gold this November, it's critical to first understand some simple but easy-to-make mistakes. Getty Images

The price of gold has been on a record run so far in 2024. After starting in January priced at $2,063.73 per ounce, the price of the precious metal has soared in the months following, now sitting at $2,734.46 per ounce — an approximate 33% rise. There are no indications that the price will be falling anytime soon, either, which is encouraging many prospective investors to act aggressively now while gold is still somewhat affordable.

Gold has multiple benefits for investors, even with the price elevated. To take advantage, though, you'll need to be strategic in your approach. Whether you're a beginner investor just getting started with precious metals now or a seasoned investor considering an additional portfolio diversification layer, there are some timely mistakes to avoid heading into November. Below, we'll detail four of them.

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4 big gold investing mistakes to avoid this November

If you want to benefit from all of the features that gold investing offers then it's critical to avoid making these four mistakes this November:

Waiting for the price to fall

With a few minor exceptions, gold has been on a one-way trajectory all year: upward. So waiting for the price to fall in any advantageous way to invest would be a strategic blunder right now. Not only is gold unlikely to fall, thus making waiting detrimental, but it's actually likely to rise again as most of the factors that drive the price of gold are prevalent right now. So don't wait for the price of gold to fall and get priced out. Act now and buy in while you still can.

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Thinking you need to buy a larger size

A price point of nearly $3,000 an ounce can be discouraging for investors. But thinking you need to buy a larger size of gold to add to your portfolio is a mistake. You can invest in smaller, fractional gold, too. This will allow you to add that same reliable gold protection to your portfolio without having to pay today's elevated price to secure it, so don't get overly focused on the price you see rising each day. You can pay less for a smaller amount of the metal.

Getting invested in the wrong type

A rising asset price may encourage you to act quickly, but getting invested in the wrong gold type could easily offset any expected gains and may actually put you in a worse investing position than if you had done nothing. With gold investments ranging from gold IRAs to gold bars and coins to gold stocks and futures for more experienced investors, you must explore all prospective types carefully before acting to ensure that you've chosen the right one for your portfolio.

Not paying attention to market conditions

Multiple factors drive the price of gold, including inflation, interest rates, geopolitical tensions and more. As a prospective gold investor, not paying attention to these market conditions is a major mistake. You should carefully consider these factors before investing, but it's also important to monitor them after, too, to ensure that your gold portion of your portfolio is performing as intended. 

Gold is a long-term investment, sure, but investing in it in today's economic climate arguably requires more monitoring then the "set it and forget it" approach some may have taken in the past. And with new unemployment and inflation data, and another Fed meeting all set for the first half of November, there are bound to be market conditions worth monitoring closely.

Learn more about investing in gold in today's economy here.

The bottom line

It can be tempting to rush into a gold investment now with the price surging. However, like all investments, it's important to take a nuanced and strategic approach before acting. By avoiding the above mistakes now, gold investors can position themselves both for greater financial success this November and for the months and possibly years that follow.