When should you buy gold?

According to one, one in four Americans over age 65 don’t have $500 in savings to cover medical bills 2021 study. Many seniors also face additional financial challenges, including a lack of steady income, unexpected medical bills and persistent inflation.

Not surprisingly, some older adults may consider alternatives reverse mortgage, Cash-out refinancing And other methods that help to finish. Buying gold may be worth exploring as an alternative because gold has historically been a difficult commodity Hedge against inflation. When the cost of living rises, gold price As well as going up.

If you think you could benefit from investing in gold, get started by requesting a free information kit to learn more.

Is now the right time to buy gold? Is there a time in your life, or this year, when buying gold is more beneficial? Let’s take a closer look at gold as an investment and when you should consider buying it.

When in life should someone buy gold?

Many investors add gold to their portfolios as a hedge against inflation and as a store of value (an asset that retains purchasing power without depreciation). Gold has historically been a strong hedge during financial crises. Many experts point out that the best time to buy gold is when inflation or recession is possible because the price of gold tends to increase during this time.

Research from World Gold Council Says that when inflation rates outpace interest rates as we are seeing, commodities like gold can outperform some traditional financial assets. When the value of the dollar falls, people look to gold and other safe and stable places to put their money to hedge against inflation.

Consider this: The 1970s was a decade of inflation, starting with an average interest rate of 5.84% in 1970 and ending with a massive average rate of 13.58% in 1980. At the same time, the price of gold rose from $35 to $850 per share. per share, respectively NASDAQ data.

Should young people buy gold?

Traditionally, gold buyers are older investors, but investing in gold can make money Young investors. For example, if you are in your twenties to thirties, you have about 30 years before you retire. with plenty of time Save for retirementYou can take more risk than an older person, so gold can be a more attractive investment option.

Is it better to buy gold for older people?

Despite gold’s appeal as a safe haven, gold can be too risky for retirees who need income-producing investments, according to AARP. Additionally, gold can experience wild fluctuations in value over short periods of time or remain stagnant for years. Older investors may benefit more from income-producing investments, such as stocks that pay dividends, municipal bonds and Real estate investment Faith on the other hand, Some investors may consider a small amount of gold as a part Diversified portfolio and as insurance against a serious market crash, catastrophic economic problem or even war.

Not sure if gold is right for you? Request a free information kit to learn more or use the table below to start exploring your options

At what time of year should one buy gold?

According to gold silverAn online precious metal dealer, Best time of the year to buy gold January, March and early April or mid-June to early July. These conclusions come from GoldSilver’s analysis of gold’s average daily performance between 1975 and 2021.

Notably, studies have shown that there is a buying season before gold prices rise. Gold prices rose on average in the first two months of the year. In the spring and summer gold prices fell before falling again.

If you want to buy gold before it rises again, start today.

Remember, supply and demand determine the price of gold. This means that if you’re buying during an active shopping period, all that competition drives up prices.

An alternative strategy for market timing

The price of gold fluctuates constantly, as can be seen on any gold price chart. Prices rise and fall in response to real-time trading behavior, so pay close attention to market movements online, watch for price drops when you buy.

If you’re looking for the best time to buy gold, you’ll know that it’s difficult to time the market for the lowest prices. A better approach would be to buy small amounts of gold regularly. By splitting your gold purchases rather than making one large transaction, you may be able to buy at a lower average price to maximize your return.

Still not sure when – or if – you should buy gold? An online financial advisor can help steer you in the right direction.

Other options to explore

When considering the pros and cons of buying gold, it helps to understand your goals If it’s to diversify your portfolio or hedge against inflation, then gold makes sense. But if you’re an older American looking for an income-producing investment or simply, an alternative source of income, gold may not be beneficial.

For older Americans who need reliable forms of cash-out, reverse mortgages and cash-out refinancing may be worth a look.

A Reverse mortgage Allows homeowners 62 and older to use the equity in their home to pay off their existing loan balance. They can then use the remaining amount as appropriate. However, it must be paid if the homeowner dies or elects to sell the home. Still, it might be worth pursuing if cash is needed.

Cash-out refinancing, an alternative to traditional mortgage refinancing, allows you to take out a larger mortgage loan than the one you currently own. You can then use the new loan to pay off the old loan and keep the difference between the two. You can potentially get up to 80% of your home’s value.

Here’s a note: The benefits of both options are specific to your personal situation, financial health, and goals. It helps to talk to a personal financial advisor who can direct you to the most beneficial option.