Why you should invest in gold now
Whether you’re someone just starting out in their career or a senior with a robust 401(k) or Roth IRA, most financial advisers would recommend having a diversified portfolio of investments.
Amid stubborn inflation and a volatile stock market, this makes even more sense. With the forecast for the economy uneven and a recession looming Americans should be taking a close look at all of their investments.
While it may not be something they think of right away – or even something they’re currently invested in – gold can actually be a good alternative, particularly for those looking for some consistency and stability.
If you’re wondering if now’s the right time to buy gold then do your research. You can start with a free wealth protection kit.
Why you should invest in gold now
The benefits of investing in gold, one of the oldest known to man, are significant and multiple. Amid the current economic environment, however, here are two timely reasons to act now:
Gold acts as a hedge against inflation
With inflation at highs not seen in decades, most investors could use all the help they could get. Accordingly, gold could potentially soften the blow of inflation by acting as a hedge.
“A rise in inflation or inflationary expectations increases investors’ interest in purchasing gold and, therefore, drives up its price; in contrast, disinflation or a drop in inflationary expectations does the opposite,” the Federal Reserve Bank of Chicago explained.
“Over time, the value of gold tends to rise as the purchasing power of fiat currencies falls,” Harry Turner, the founder of The Sovereign Investor, an investment education website, recently explained to CBS News.
“This is because, unlike paper money or other types of investments, gold is a physical asset that can be stored and traded. As long as people continue to see it as a valuable commodity, the price of gold is likely to remain a good hedge against inflation.”
If you’re experiencing the negative ramifications of inflation and think a gold investment could help then reach out to an expert now.
Gold diversifies your portfolio
If you’ve taken a look at your retirement savings in 2022 then you’re already familiar with the negative consequences of inflation and poor stock market performances. This is why it makes sense to diversify your portfolio and not put all your eggs in one basket.
That doesn’t mean you need to radically change your investments, however. Even 5% in gold can potentially help.
Edward Karr, the founder of U.S. Gold Corp., recently told CBS News that just a small percentage dedicated to gold mining equities or physical gold could potentially help “reduce an overall portfolio’s risk and potentially increase the long-term returns.”
Instead of tying up all of your money in stocks and bonds, spreading it among different investment types could better help you manage your risk and return. By putting some money into gold – in addition to your other investments – you’ll increase the likelihood of having your money grow.
Use the table below to explore your options.
The bottom line
With the economy uneven and the prospects of any potential financial relief unclear, now is a good time to review your investments. Depending on your personal circumstances, age and financial goals, gold can be an investment worth pursuing.
Do the math and speak with an expert today to see if gold is right for you.