A new year is upon us, and it is the perfect time to give thanks for the year and look forward to a new season. For many Americans, the new year marks a time to review their financial goals, market developments and investments.
Given the state of the economy, a possible recession and turmoil in global affairs, many are adding some gold glitter to their portfolios. Gold is traditionally seen as a hedge during times of economic inflation and volatility and an asset that can help diversify your holdings.
If you think you could benefit from investing in gold, get started by requesting a free wealth protection kit to learn more now.
How much should you invest in gold?
But if you’re thinking of buying some gold, how much should you invest? Here are some considerations to help you decide.
Gold is often seen as a safe haven, a commodity that holds its value over the long term. However, this metal can be volatile in the short term. Because of this volatility, the price of gold is low compared to the long-term appreciation of traditional stocks. As a result, conventional wisdom suggests holding no more than 10% of your portfolio in gold.
Allocating a piece of gold to your portfolio can help. Because gold has an inverse relationship with the dollar. When the value of the dollar decreases, the value of gold increases and vice versa.
Between inflation and stock market volatility, it can be tempting to dump substantial amounts into gold out of fear. However, a better option may be to ignore the short-term noise, focus on your long-term investment strategy and goals, and use the decline in prices to invest in stocks and gold assets like ETFs and mutual funds.
A balanced portfolio can help you better achieve your financial goals. Consult your financial advisor to design or rebalance your portfolio to meet your needs (which may change over time). Goldco can answer any questions you may have about this unique investment opportunity.
How do you invest in gold?
When thinking of gold, images of gold bars often come to mind first. But in reality, there are multiple ways to invest in gold, such as:
You can buy physical gold in three forms:
- Gold Bullion: You usually can Bars in one-ounce or 10-ounce bars. Gold prices are rising and could be expensive, as it trades at roughly $1,800 through December 2022.
- Gold Coins: Gold coins can be easier to store than gold bullion, and you can buy coins of one ounce or less. Remember, dealers may charge 1% to 5% markup on the gold price.
- Gold Jewelry: Most people who buy gold jewelry do so for its beauty, not the investment value.
Gold exchange-traded funds, or ETFs, are products backed by gold rather than owning physical gold. As such, ETFs are traded on an exchange like individual stocks. Provides an easy on-ramp for ETFsBecause you can buy as little as a single ETF share through a brokerage or in your IRA.
Works like a standard IRA but holds gold instead of equity. Like a standard IRA, you can get a traditional, Roth, or SEP gold IRA depending on your unique financial situation and goals. A gold IRA company can help set you up to open a gold IRA and meet IRS regulations. Request a free asset protection kit from Goldco now to learn more.
With gold futures, a buyer and seller enter into a contract to trade an agreed amount of gold at a specified price and time, regardless of what is happening in the market. However, this is generally not a wise strategy for beginners due to its risky nature.
Gold Mining Company
Investing in gold mining companies through gold ETFs is a common investment strategy. Gold ETFs give you exposure to gold that is not entirely dependent on the price of the metal. The performance of gold mining companies plays an important role in the fund’s price. For example, if a company decides to produce more gold, the price of the ETF may rise even if the price of gold does not rise.
Where can you invest in gold?
You have many depending on the type of gold you want to buy.
- Where to buy physical gold: You can usually buy gold bars and coins from online dealers. Of course, if you buy gold jewelry through a jeweler or retailer, you’ll be hit with a significant markup. An estate sale or auction may offer jewelry with no markup.
- Where to Buy Gold ETFs: These funds are available for purchase and sale through most physical and online brokerages, making them a highly liquid investment.
- Where to buy Gold IRA: Precious metals companies can help you open a self-directed IRA account and choose an IRS-approved custodian to buy gold on your behalf. GoldCo and Birch Gold Group are two widely used gold IRA companies you may want to consider.
- Where to Buy Gold Futures: Gold futures contracts are traded on the New York Mercantile Exchange (NYMEX) and you can buy them at any brokerage that offers them.
- Where to Buy Gold Mining Companies: You can invest in gold mining companies, ETFs and mutual funds through most brokerages.
with gold silver Gold prices rose during six of the eight largest stock market crashes since 1978.It might make sense .
But like most investment assets, gold carries a degree of risk, which is why many experts recommend keeping your gold investment allocation below 10% of your assets. Consider your long-term investment strategy, financial goals and risk tolerance before making any investment decisions.
Learn more with a free asset protection kit from Goldco today.