Benefits of Investing in Gold in 2023

Americans have had to deal with a lot when it comes to their finances this year. From a still higher price Improved interest rates And a continued concern over a Ahead recessionChoosing the best place to secure your money in the long run is a challenge.

at the same time, More Americans are increasingly interested In gold as an investment option in 2023. It’s not hard to see why: The price of gold has increased This year and gold reputation a A safe store of value May have many applications in today’s economy.

If you are interested in adding gold to your investment portfolio, this is useful to know Precious metal benefitsAnd how it can help you reach your financial goals today.

Learn more about gold investing now with a free information kit.

Gold investment benefits in 2023

Here are some ways gold can be a good asset to help you reach your investment goals this year:

To hedge inflation

Inflation may have come down from that About -9% higher than last year, but the inflation rate is still far from the Federal Reserve’s 2% target. recent Consumer Price Index It was reported that inflation was still up 4% year-over-year in May — and you can still feel the pinch in everything from housing costs to food and travel.

As an investment, gold can be one A safe haven during inflation. Historically, the dollar appreciates when inflation pushes it down. Because as the value of the dollar continues to fall, more people seek the stability of gold, thereby helping it Price increase.

Perhaps the most cited example occurred in the 1970s. Inflation over the decade the range from just under 3% in 1972 to over 13% by the end of 1979. During the same period, the price of gold rose from about $50 to about $500 an ounce. World Gold Council.

Considering gold as an inflation hedge in today’s economic environment? Use this free investor kit to explore your options.

To diversify

One of the best ways to reap the benefits of gold is by using it as a diversifier For your other long-term investments.

“Commodities including gold serve as good diversification tools,” says Gregory Young, CFP, founder of Ahead Full Wealth Management. While relying on equities is the best route to growth, he says, you can see additional growth by “incorporating thoughtfully diversified positions.”

That’s why many experts recommend only about 5% to 10% of your portfolio With a small allocation to gold, you can let traditional investments like stocks grow over time. But during market downturns, gold can help offset losses to stabilize the value of your portfolio. Especially this year, as the possibility of a recession remains, investing in gold can be a good way to weather the impending uncertainty.

“Of the many precious metals, I would prefer gold because it has the best growth and behaves the least erratically,” Yang said.

To maintain liquidity

Liquidity An advantage of gold that may not be as top of mind as its inflation and diversification benefits.

Gold is a good option for storing value and hedging inflation, agrees Ohan Kaikchian, CFP, founder of Ohan the Money Doctor. “Also, it has decent liquidity: the ability to turn it into cash quickly.”

Gold is not only an investment asset, it is also a form of currency – and has been for thousands of years. Its value is recognized worldwide, and the precious metal can be bought and sold at any time. In fact, gold spot price can help you realize the value of your gold investment whenever you want. This liquidity helps gold remain a reliable, stable store of value in your portfolio. As a limited resource with value around the world, you can be sure of your gold investment.

Learn more about how you can start investing in gold today with a free investment guide.

Bottom line

In a year defined by running Economic uncertainty, gold can best benefit you with its stability. This year, though, its price has gone up — even close All time high It has also shown stability in the face of volatility in other markets – a few months ago. Whether you’re looking for a hedge against ongoing inflation, there is one way Your portfolio is diversified Still allowing traditional asset growth or added liquidity with historical value, gold may be worth considering.

Still deciding whether gold investing is right for you? Talk to an expert to learn more about your options and how gold can fit into your long-term investment plan.