Gold investment tips from financial experts

Investors often turn to a gold investment as a means diversity And Protect their portfolio. Gold has a long-standing reputation as a Safe haven assets which can weather economic uncertainty and provide steady, reliable returns.

But, as with any investment, there are a few things to keep in mind to make sure the precious metal pays off for you. To help you do that, we’ve asked some financial experts for their advice when it comes to investing in gold.

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Gold investment tips from financial experts

Here’s what experts recommend for potential gold investors.

Choose the right investment type

there There are many ways to invest in gold, and the best one for you depends on several factors. Each type of investment has advantages and disadvantages, so it’s essential to understand which one fits your investment goals and risk tolerance.

“The type of investment to use should be determined by a few different variables: costs, ongoing management fees and liquidity,” says Dana Maynard, CFP, founder and chief financial planner of Twin Cities Wealth Strategies. “Each type will have different variables.”

something Financial experts we spoke to recently Most frequently recommend investing in gold through Exchange-Traded Funds (ETFs) And Consolidated capital.

As Noah Damsky, CFA and Principal at Marina Wealth Advisors advises, “If clients have decided to add gold to a portfolio, I would only use gold ETFs that are backed by physical gold storage such as GLD. It is cost-efficient, liquid and Physical gold/coins do not trade with a markup like the market. Trading gold stocks introduces additional risks such as exposure to specific mines and management teams.”

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Don’t invest too much

provides gold Many benefits For investors. However, to get the most out of gold investment, it is important to know how much you should invest.

As a general rule, Experts recommend Allocate 5% to 10% of your portfolio to gold. This allows you to enjoy the benefits of safety gold while maximizing returns from other, potentially riskier assets, such as stocks.

“Commodities, of which gold is one of many, have done a decent job of keeping up closely with inflation over the long term, but there have been periods of volatility where commodities have underperformed, so I recommend using gold as only one component. Portfolios where commodities are a Taking a long-term view forms a part of the overall fixed income portfolio,” Maynard says.

Focus on long-term benefits

Gold is not a “get rich quick” investment Assets perform best when you hold them for years, if not decades.

“Gold’s main function is as a risk diversifier,” Damsky said. “It’s not a productive asset, but it can hedge against catastrophe or currency devaluation. If you can forgo some of the income/growth of traditional stocks and bonds and are concerned about catastrophic risk, gold may be right for you.”

Because it is best used as a Long term investmentTrying to time the market is not a golden investment strategy that many will benefit from.

“Gold investors should not attempt to predict short-term price changes for gold or any other investment asset,” Robert Michaud, CIO of New Frontier Advisors, previously said. CBS News. “The nature of markets is that prices reflect currently known information, so investors should focus on having an appropriate portfolio for the long term.”

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Bottom line

Investment in gold It can be a rewarding experience for investors who take the time to understand how to do it wisely. By choosing the right type of gold investment, knowing how much to invest and focusing on long-term benefits, you can make informed decisions and maximize your success. Remember, investing always carries some risk, so it’s essential to do your research and consult with a financial advisor about your financial plan before making an investment decision.