Gold prices may reach record highs very soon. Here’s why you should invest now.

Amid growing concern about a possible recession and before the fast-approaching deadline The US defaulted on its debtGold is emerging as a tough choice for many investors today.

After crossing the $2,000 threshold in early April, gold price It has remained close to or above that amount in the weeks since. But some experts believe today’s gold price could be the start of a prolonged price rally for the precious metal — thanks to an expected global recession and a possible U.S. debt crisis, all against a backdrop of persistent inflation and Rising interest rates.

If you are looking for Invest in gold as the price rises and diversify your portfolio to withstand economic volatility, there are some questions you should have answers to.

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Could gold hit another record high?

Gold prices are already near record highs today, but there are factors leading experts to predict that there is still growth ahead.

In fact, an investment strategy report was released this week Wells Fargo Investment Institute, strategists now name gold as a “favourable” asset. Gold prices, strategists predict, could reach targets of $2,100 to $2,200 by the end of this year and $2,400 to $2,500 by the end of 2024.

That tracks with expert predictions CBS News previously reported, which is as high as $2,500 in the long term and may even reach $2,100 during this quarter. So far, information from World Gold Council Shows that the price is still near $2,048 in 2020 and near this year’s high of $2,037.

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Why is the price of gold rising?

A number of converging economic factors play a role in today’s rising gold prices.

Driving down still-inflated prices US dollar valueBank failures made some earlier this year Distrust in the banking system Among Americans and Chances of recession All are giving some investors reasons to turn to gold.

“As long as a global recession is likely, which we suspect it will be for the rest of 2023, we believe gold and other precious metals should move higher,” strategists wrote in this week’s Wells Fargo Investment Strategy report.

Most pressingly, there is also the looming debt crisis the United States must face Unprecedented default on its debt next week which itself could be the catalyst that leads to recession.

While it is impossible to predict the future, we can learn from similar examples in the past, which may lead some Americans to seek safety in stable investments like gold.

“In 2008, gold proved to be a safe haven and appreciated during the worst months of the financial crisis,” said Andrew Mastro, CFP, president and founder of Wrought Advisors. “If a U.S. default comes through, it’s possible that gold prices could rise again as more investors seek safe-haven assets.”

Why invest now?

The price of gold – and the expectation that it will continue to rise – is a good reason Add precious metals to your portfolio Today.

A tough choice for Gold diversity Because it works independently of other resources. This could mean holding steady while the US dollar loses value or gaining more value when the stock market declines. Over time, as the money you invest in other markets fluctuates, gold can provide some added security.

Just remember, shifting all your investments into gold is not the best idea. Despite the uncertainty today, maintaining a diversified portfolio with investments in traditional stocks and bonds — with the potential to grow over time — can help you meet your long-term investment goals. Gold is one Great diversifier And inflation hedges, but Experts recommend Keep your allocation to around 5% to 10% of your overall investment.

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Bottom line

Not only is the price of gold near an all-time high today, but some experts believe it could rise in the face of economic uncertainty and a potential recession. If you are looking for a way to maintain some stability in the long runGold can be a good hedge against other markets and volatility.