Should you invest in gold if the economy improves?

Interest rates are high and inflation still persists. But if you look closely, there are some encouraging economic indicators. The latest came when the Labor Department released Friday Its monthly unemployment numbers. Although the unemployment rate actually ticked up from 3.4% to 3.7%, employers added 339,000 jobs in May. That was significantly higher than the 190,000 new jobs economists expected for the time frame.

“The labor market is moving full speed ahead with the largest gains in the services sector,” Bright MLS Chief Economist Lisa Sturtevant told CBS News after the report’s release.

While the overall economy still has a ways to go to get back on track, it’s also possible that the Federal Reserve could leave interest rates unchanged when it meets later this month, as they Recently implied. This is also welcome news after 10 rate hikes until March 2022. Inflation is already at a two-year low.

In this environment, with some encouraging signs, but more work to be done, investors are taking a closer look at where they are putting their money. For example, Gold is often considered a smart investment During economic downturns or when inflation rises. But is it worth the investment at this point and time or should you look elsewhere? That is what we will break down.

Start by requesting a free investor kit here to determine if gold investing is right for you.

Should you invest in gold if the economy improves?

Gold has a well-earned reputation as a Hedge against inflation And as an increase Struggling economy (It often has an inverse relationship with the dollar), it can be a smart investment to pursue in other economic climates as well. Here are three reasons why you should invest in gold even if the economy improves.

It can diversify your portfolio

If you are one of the millions who have seen them 401k and retirement savings suffer In recent months and years you already know how important it is to diversify your portfolio. You should never be completely dependent on a particular asset as it can hurt you when that asset inevitably underperforms. Fortunately, gold can help. By keeping a portion of your money in gold, you can better protect your funds for a longer period of time.

Well, you usually won’t get the same return on your investment as with risky options like stocks and bonds. But don’t put yourself in a position where you lose even a significant amount. Diversifies your portfolio with 5% to 10% in gold You will better position yourself to weather diverse economic climates. And if the economy improves, you’ll enjoy those benefits, too.

Now know more about diversification with gold here.

It’s easy to sell

Unlike some other investments, there has always been and will be a strong interest in gold. Because of this, selling it would be an easier investment than some other, more complicated one. Gold, after all, is considered A liquid investment, meaning you’ll be able to easily sell it for cash at or near its market value at the time of sale. And you can do so in a number of ways, including through Gold futuresA Gold IRA or a Gold ETFs. Just make sure you – and your buyer – are aware gold price Time the sale so that the process can be transparent and easy to complete.

Price is compatible

Gold is currently around $1,960 per ounce. While this number has increased in recent months, it has not decreased dramatically. Between June 2020 and June 2023, gold prices were at a low of $1,631.70 and a high of $2,048.15, World Gold Council. While there are inevitable dips and rises over that three-year period, overall it’s consistent, especially when compared to broader market volatility. And consistency—regardless of the state of the economy when investing—is key. Gold can usually provide this, allowing investors to spend more time working on other parts of their portfolio.

Not sure how gold investing can help you? Request a free investment guide here to find out!

Bottom line

Investors may be on the back foot for the worst inflation and higher interest rates at war. Or there may be some additional, temporary economic pain before finally settling down. Regardless of where the economy is headed in the short run, Investing in gold can help. Americans can more effectively diversify their larger portfolios by investing in gold. And, if they change their mind, they should have a relatively easy time selling their investment. This is for many reasons, but mainly due to the consistent price and value of gold, especially when compared to other, less reliable investments.