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The price of gold hit a record high in early March, and if investors thought that was the new limit, they were wrong. The price of the precious metal continues to rise, broke multiple records in April, too. It now stands at $2,291.89 an ounce as of April 3, according to American Hartford Gold, and the futures price of the yellow metal could easily rise further in the coming days and weeks.
Against this background – and still constant (albeit dramatically cooler) rate of inflation – many investors may be wondering whether to invest in gold now. Or are they better served by waiting for the price to drop? Although speculating on the future value of any asset is risky, especially alternatives such as gold and silver, there is a compelling case for investing in gold today. Below, we’ll describe three reasons why investors shouldn’t wait for a drop in the price of gold to get involved.
Start by reviewing your gold investment options here to learn more about this unique opportunity.
Should you invest in gold now or wait for the price to drop?
Here are three reasons why investors should consider gold now.
The price may not drop
There is no guarantee that the price of gold will fall at some point in the future, thus providing a more profitable opening for investors. But even if this happens, there is no way to effectively predict when it will happen or by how much the price of gold will fall (it could be a minimal amount). By understanding this, investors may be better served by buying now. Depending on the type of gold invested in, it can be relative easy to sell (or buy more)if the price changes.
Learn more about investing in gold here today.
The price of gold can become prohibitive
The price of gold at this time last year was around $1,985 an ounce, roughly 15% lower than in April. If this price rise continues unabated, the investment could quickly become prohibitive for many. Instead of waiting for the price to drop, then, investors may want to get in now, before today’s “high” price of $2,291 per ounce becomes tomorrow’s “cheap” option. Just make sure you don’t buy too much at today’s high price (most experts recommend limiting gold to 10% or less of your total portfolio).
You’ll miss out on the immediate protection that gold can provide
Waiting for the price of gold to fall can not only be an exercise in futility, but it can also cost you in the short term. Without gold in your portfolio now, even at today’s elevated prices, you’ll be missing out on the immediate protection the yellow metal can provide. Gold can be a smart hedge against inflation, as it tends to maintain its value when inflation damages the dollar’s purchasing power. But it can help diversify your portfolio, offering a buffer when other assets underperform. These characteristics of gold are consistent and valuable – but you’ll miss them if you wait for an ideal gold price.
The bottom row
As tempting as it may be to wait for the price of gold to fall, this may not be an advisable approach. There is no guarantee that the price will fall (recent activity suggests otherwise) and the price may rise so much that the investment becomes unaffordable for many. And by waiting for the perfect opening, investors will lose the inflation hedge and portfolio diversification that gold provides consistently regardless of any record price swings. For these reasons, many would find now a good time to invest in the yellow precious metal.
Learn more about your gold options online.
