It’s almost a new year and a time of reevaluation for many Americans. If you’re one of them, you might be taking a look at your finances — specifically, what you’re investing in as we head into a possible recession.
For some, gold may be a smart choice as an investment this year — and for a number of reasons. If you are one of the many Americans considering this unique investment opportunity, get started by requesting a free asset protection kit from Goldco to learn more.
Why should you invest in gold in 2023?
If you are thinking of investing in gold in the new year, here are some of the benefits that can come with it.
It is a good hedge against inflation
Gold and other precious metals have long been considered. Because it holds its value over the long haul — despite dollar fluctuations — and preserves your purchasing power.
Battle Bank President Frank Trotter explained, “Looking ahead to 2023, as inflation continues to rise, this may be an excellent time to increase allocations to gold. Over time, analysts have shown that gold has been a good hedge against inflation.”
The Personal Consumer Expenditures (PCE) index measures the prices people in the United States pay for goods and services. The index ranges from 6% to 7% in 2022 – above historical norms for the country. That’s well above the Federal Reserve’s target rate of 2%.
According to experts, the economy may not hit that mark until 2025 — perhaps even later, making gold a more attractive investment to consider in the new year.
“From what we’re seeing from recent economic data combined with the Fed’s stance, it’s unlikely that the economic pain will get better anytime soon. In fact, it’s likely to get worse,” said Richard Gardner, CEO of the financial technology firm. The modulus is global.
“Historic government spending in the form of stimulus during the shutdown, combined with a ground war in Eastern Europe, and lingering supply chain issues surrounding a resurgent Covid-19, make it likely that the economy will not recover in the near term. All of that bodes well for gold, because It has historically outperformed during times of inflation.”
You can now explore your gold investment options online or through the table below.
It can diversify your portfolio
When an economy goes into recession — something Goldman Sachs says has a 35% chance of happening in the next year — so does the stock market.Also can lose value during a recession.
At this point, gold can be a good way to make sureThis reduces your exposure to risky assets, and minimizes the impact of any losses.
“If investors are looking at a potential recession, and possibly stagflation, reallocating to gold can be a good choice as they reduce exposure to stocks and bonds,” Trotter said.
It is more fluid
In a recession, liquidity – or being able to offload assets quickly for cash – is critical. Then, if you fall on hard economic times, you can cash in those assets and still stay afloat on bills and other essentials.
Stocks, bonds, real estate, collectibles and other tangible assets are liquid investments. It’s hard to turn them into usable funds, especially when those items are in low demand (who wants to buy rare art when you can’t pay the bills?).
Gold, on the other hand,And cash can be exchanged very quickly, making it a smart investment during down periods. As Gardner says, “Gold is a useful addition to diversify a portfolio because of its price stability as well as superior liquidity.”
Good for some, not for others
To clarify:For some, it’s not the right move for everyone. For example, if maximizing the growth of your investment is a priority, then gold is probably not for you. Gold is generally considered a low-risk, safe-haven investment — not one that offers high returns.
If you’re not sure gold is the right move for your finances – or you need help, talk to an investment advisor or financial planner. They can help you make the right choices for your goals and appetite for risk.
Goldco also offers a free Asset Protection Kit for 2023 with additional information you may find helpful.