With constant high inflation, Stock Exchange uncertainty and new concerns about the security of banking sector, many Americans may find themselves taking a closer look at their investments and savings. The recent collapse of both Silicon Valley Bank and Signature Bankspecifically, it made millions of Americans question how they protect their money — and whether they should spread their risk by investing elsewhere.
One alternative they can turn to is gold. Against the backdrop of banking news, gold prices and gold futures both rose, leaving many investors wondering whether to invest in gold now. As usual, the benefit of any individual investment is specific to the individual. However, recent developments may make now a great time to spread your risk by investing in gold.
If you’ve recently considered gold, start by requesting a free information kit to learn more about this unique investment opportunity.
Should you invest in gold amid banking uncertainty?
While everyone’s financial situation is different, there are some benefits to investing in gold, especially in today’s economic climate. Here are three advantages of investing in gold now.
It can act as a hedge against inflation and uncertainty
Gold is generally not considered a way to grow your money as much as to protect it. Specifically, it is considered to be hedging against the negative effects of inflation and market uncertainty.
“An increase in inflation or inflationary expectations increases investor interest in buying gold and therefore increases its price; in contrast, disinflation, or a decline in inflation expectations, does the opposite,” the Federal Reserve Bank of Chicago previously noted.
“Historically, gold has been seen as a way to hedge against inflation, as the price of gold tends to keep pace with the cost of living,” notes a Money.com report.
“Over time, the value of gold tends to rise as the purchasing power of fiat currencies falls,” Harry Turner, founder of investment education website The Sovereign Investor, recently explained. 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 think you could benefit from investing in gold now, start by requesting a free information kit to help you decide.
It can diversify your portfolio
Trillions in retirement savings were wiped out last year, and stock market performance has been uneven in recent months. With new concerns about the recent bank failures, the market may still have a way to go before it goes higher again. In this environment, allocating your investments and diversifying your portfolio it makes sense. Rather than tying up all of your investments in bonds and stocks, spreading them among different investment vehicles could help you better manage your risk and return. You will also improve your chances of growing your money.
Just be smart about how much you invest in gold specifically. Most advisors recommend taking advantage of investing in precious metals limiting the gold portion of your portfolio to 10% (many others would limit it to 5%). Talk to a financial advisor or get a gold investment information kit to determine the exact amount you should invest now.
May sell out quickly
Gold is profitable for many reasons, including its ability to be sold off quickly if needed. Historically, there has always been a demand for gold, whether in coins, bars (ingots) or in some other form. That is unlikely to change in today’s economy. Gold remains a valuable asset (the current price hovers around $1,900 an ounce), which should be a relatively easy sell if you want to try a different investment in the future.
The bottom row
As with any other investment, interested parties should carefully judge pros and cons of gold before you start. However, there are numerous benefits to investing in the precious metal, especially now. Gold can act as a hedge against inflation and general economic uncertainty. It can also help diversify your portfolio and, if it doesn’t perform the way you want, it can be sold relatively quickly.
So start exploring your gold investment options now to see if it makes sense for you.