Worried about the debt crisis? Consider investing in gold.

After weeks of negotiations among lawmakers with little progress, Americans are still up for it US debt default deadline looming — which may be before June 1.

There is no precedent for a loan default, so it is difficult to predict exactly what the outcome will be. Experts have speculated that exceeding the debt ceiling could be one “catastrophe” For economy, with one recession And Market turmoil upcoming

Some investors have already started shifting some of their portfolios to gold this year amid rising interest rates, Slower inflation And the possibility of a recession on the horizon. But with the credit crunch throwing more uncertainty into the mix, you might be wondering if gold is right for you, too.

Here’s what to know about gold keeping your money safe and why Good idea to consider today. Before you get started, explore all your gold investment options with a free information kit now

How Gold Can Help Keep Your Money Safe

Although its correct result The US defaulted on its debt Impossible to predict, gold has several characteristics that can make it a good option for concerned investors.

Gold can help you diversify

There are many options for Diversify your investments, choosing an asset like gold during times of uncertainty has unique advantages. Because its price moves independently of what other markets are doing.

As Mel Mattison, CFP, financial services professional and consultant recently said CBS News“Gold often marches to the beat of its own drummer.”

Regardless of what is happening with the economy, diversity A tried and tested strategy for maintaining a strong portfolio over time. When you diversify, you spread your risk. So when a market goes down, only a portion of your overall investment may suffer while other assets — like gold — can help keep your portfolio moving.

Learn more about diversifying with gold by requesting a free investment guide today.

Gold is often a safe bet during economic downturns

Gold can be a particularly worthwhile investment during recession or periods of recession.

Analysis by the Congressional Budget Office and the US Treasury Department Recently found Even coming close to breaching the debt ceiling “could cause significant disruptions in financial markets that would harm economic conditions facing households and businesses.” How long a default lasts can be a big factor in how deep a recession goes and how big the market impact is, but gold has two advantages against potential volatility.

for one, gold price Stocks tend to move independently of the market. Take last year for example. While the S&P 500 declined overall, the price of gold was not only stable, but even slightly increased.

Even more, gold fares well when the dollar depreciates. Banking uncertainty The U.S. dollar has already weakened this year, but economists say debt defaults are likely Weakening the currency Across more global economies. If so, gold can be a Safe haven investment To help maintain affordability through volatility.

Gold prices may still rise

Gold has already risen This year the price has reached near all-time highs and is holding steady around the $2,000 mark.

Strategists remain optimistic despite ongoing discussions about the debt crisis Gold price standard For the next few months and even next year. From analysts to large organizations Wells Fargo Investment Institute from UBS Chief Investment Office per JP Morgan They have confidence as the price of gold continues to rise. These experts predict that gold could still hit new all-time highs this year, as high as $2,200 an ounce by next spring and $2,400 by the end of 2024.

Bottom line

If you are looking for options to protect your money in the event of a US debt default, the gold May be a resource to consider today. Diversification, in general, is a good investment strategy in any economic environment. But diversifying with gold can be a safe bet during economic turmoil that could bring on a debt crisis because its price has historically remained stable during recessions and increased when the value of the U.S. dollar weakened.

If you’re thinking about adding gold to your investment portfolio, explore your options with a free Investor Kit.