Gold's price is down again. Should you invest now?

A recent drop in the price of gold has opened up new opportunities for prospective investors. Getty Images/iStockphoto

Here's something you may not have read lately: The price of gold is declining. While not in a dramatic downfall, the price of gold per ounce is down around 4% from where it was on June 13, according to American Hartford Gold. And though a difference between $3,432.56 and $3,294.71 per ounce may not seem substantial on paper, it does represent a change in the gold market that investors may want to take advantage of. It wasn't that long ago, after all, that gold hitting the $3,000 price milestone was considered major news. Now, however, many expect the price of the precious metal to eventually hit $4,000, perhaps sooner than expected.

With this likely temporary dip in gold prices, then, is it worth investing in now? Or should prospective investors wait for another drop to get started? Below, we'll break down the reasons why now may be a smart time to buy into the gold market.

Learn how you can invest in gold without paying today's top price here.

Should you invest in gold with the price down again?

While each investor's goals, needs and budgets are different, there is a strong case to be made for investing in gold now, during this new price decline. Here's why:

The price dip is likely to be short-lived

The price of gold fluctuates, but over time, it tends to rise. Just look at the changes since the start of 2024, when gold was priced around $2,000 per ounce, for proof of this trajectory. And with items like a new inflation report and Federal Reserve meeting on the calendar for July, both of which can impact gold prices, it could behoove investors to act promptly by investing in gold now, at this slightly lower entry price point. And with options like fractional gold bars and fractional gold coins, you may be able to get started in the market at an even lower price point. Waiting, however, could jeopardize your ability to get invested in the yellow metal at all.

Get started with a gold investment before the price rises again now.

The next price surge could push you out of the market permanently

Gold's price didn't seem like it would hit $3,000 … until it did. Then it seemed like it would hover around that point … until it surged past $3,400. Now, the potential for the price of the metal to hit $4,000 per ounce seems more realistic than ever. Waiting, then, to take action may not be smart, as the next inevitable price surge could push you out of the market permanently, even if you're planning a fractional gold or dollar-cost-averaging strategy right now. And remember that multiple factors drive gold's price, including geopolitical tensions, which can be impossible to predict with certainty. Should something change on the global stage, then, don't be surprised to see gold's price react in an upward way. 

Your portfolio needs the features gold can provide

If you need the hedge against inflation and portfolio diversification that gold offers, then it may be wise to get started right now. These features shouldn't be viewed just through a price prism, as the benefit of having a diversified portfolio and protection against the next inevitable rise in inflation is priceless. Don't forget, inflation actually rose slightly in May, underlining the importance of having an asset in your portfolio that can help others, like stocks and bonds, that may react to this sort of news less advantageously. 

The bottom line

A small but noticeable decline in the price of gold could give prospective investors the opening they need to get started at a more affordable entry point. With the likelihood that this price drop will be short-lived, the potential for the next price surge to push investors out of the precious metal market permanently and the need for an inflation hedge and portfolio diversification tool still strong, it makes sense to buy in now. With a little luck and some strategic timing, you may even be to turn a quick profit if you ultimately decide to sell your gold later this year, too.