More Americans see gold as a good investment. Here’s why.

If you are more concerned about the safety of your investment portfolio this year, you are not alone.

Inflation, rising interest rates and a Possible recession, many investors are seeking stability. And now, the growing risk The US defaulted on its debt And a potential economic downturn could leave even traditionally safe investments like T-bills and bonds with some added volatility.

More and more people are turning towards gold.

A A recent Gallup poll shows that the percentage of Americans who name gold as the best long-term investment option has nearly doubled over the past year, from 15% to 26%. According to surveys, it is the second-best investment name behind only real estate.

“Gold continues to be the beneficiary as confidence levels decline in both real estate and stocks,” the poll report reads. “This is usually during times of economic downturn or uncertainty, as happened during the Great Depression and is happening again today.”

Experts are also viewing gold as increasingly positive. A strategist Wells Fargo Investment Institute Recently upgraded their guidance on precious metals from neutral to favorable and even predicted that gold prices could move closer to $2,000 to $2,500 in 2024.

Long term application of gold While the economy is uncertain that may explain why it is becoming more popular among investors today.

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Why Americans are now turning to gold investments

There are a few factors that make gold different from other investment assets and a good choice for long-term investors. Here’s what to know:

You can diversify against losses

One of the The best reason Invest in gold diversity. Gold prices tend to move independently of other investment markets, which can help protect your money if those markets are volatile.

For example, 2022 was an overall negative year for the S&P 500, but the price of gold actually saw a small increase. And today, even as uncertainty grows around the overall economic climate, gold prices continue to soar near all-time highs. Some experts even believe so Gold prices are still far from the peak they reached in this economic cycle.

On the other side of the coin, you don’t want to put all your money in gold. Although it is a safe haven, it does not have the potential to grow in some risky investment types. Dedicating a portion of your portfolio (Experts recommend around 5%) to gold can help you get through periods of uncertainty and a volatile market, while still taking the opportunity to grow your investment over time.

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You can maintain purchasing power

Gold is generally seen as a Hedge against inflation.

Not only is the price of gold stable compared to other markets, but it also has an inverse relationship with the value of the US dollar. As inflation lowers the value of the dollar, The price of gold continues to rise.

This may be good for long-term investors; Even if various inflationary periods limit your purchasing power elsewhere, the money you invest in gold can remain constant or Even the price increases. Especially if you are a New investors With a long investment horizon, gold can bring some much-needed stability to any future economic environment.

Bottom line

If you invest for the long term, you should expect a financial rollercoaster. The economy is constantly changing, which can make it difficult to predict how your investments will perform over time. The most important thing you can do is set yourself up to benefit from periods of growth while minimizing your losses when markets are more volatile.

In today’s increasingly uncertain economy, gold offers long-term stability and a counterbalance to volatility elsewhere — which is attractive to many investors. As the possibility of a recession remains and the consequences of a US debt default are still up in the air, gold can be a good way to offset some of the uncertainty in your own portfolio.

Explore gold investment options today with a free investment guide