Why you should add gold to your portfolio

There are more and more investors Leaning towards gold lately. The World Gold Council Reports that global gold demand will rise 18% in 2022, “the strongest year for gold demand in more than a decade.” As demand increases, The price of gold has increased Over $2,000 an ounce, close to a record high set in 2020.

It is not surprising that gold is a hot commodity right now. One of the oldest forms of currency, it has reliably held its value through market volatility that has tanked other assets. When the dollar loses value and stocks fall, gold stands still, providing some much-needed protection for investors’ portfolios.

What makes gold such an attractive investment and how can it benefit your portfolio? That’s what we’ll explore in this article.

To learn more about gold investing, request a free information kit here.

Why you should add gold to your portfolio

Gold is a smart addition In your portfolio for many reasons. Here are three of the bigger ones.

It shines when the economy is weak

in time Inflation And recessionGold prices tend to rise, providing a welcome balance to the declining value of the dollar.

“Precious metals like gold typically thrive in environments fraught with uncertainty, whether geopolitical or financial,” William Bevins, CFP, CTFA, previously said. CBS News. “Gold can become attractive during times of financial stress, such as low stock market confidence or problems within the banking system.”

A Chicago Fed Analysis Comparing gold prices to consumer expectations shows that the more pessimistic consumers are about the US macroeconomics, the more gold prices tend to rise to protect their money.

The common belief that gold is a safe haven in a bad economy is born out of this number. For example, in the biggest stock market crash of the last 40 years, gold rose six times out of eight. gold silver. Gold is a smart investment In any economyBut it’s especially handy when things get messy

It also diversifies your portfolio

A successful portfolio weathers all economic storms. To ensure the best performance, you should hold assets with varying degrees of risk and reward. This is known as diversity.

resources like stock Can bring big returns, but they are highly volatile and can lose value quickly based on a variety of factors, from bad press for a particular company to overall market conditions. To offset this loss, you should hold more conservative assets, which may provide only a moderate return but deliver reliably when other assets crash. Gold is one such asset.

Experts recommend keeping 5% to 10% of your portfolio in gold for best results. Request a free Investor’s Kit now to learn more about your gold investment options

It is more liquid than other investments

You are likely to get the highest returns by holding your gold investments for the long term. That said, there may be times when you need some extra cash. Gold is highly liquid compared to other assets, which means you can sell it quickly to generate cash for any purpose.

This can be especially helpful if you need cash in a tough economy. Since gold is often worth more when the economy is weak, you’ll be able to get more for your investment if you can cash it out at another time.

Bottom line

From reliable returns to protection in times of economic trouble, there are many reasons Why you should invest in gold. If you’re ready to add gold to your portfolio, here you are Several options Picked from. You can start here now!