3 big benefits of gold investing this September
The start of a new month is always a good time to re-evaluate your financial situation. What's working? What isn't? And where should you consider investing your money as the economy evolves? For many Americans, the answer to that latter question in recent years has been precious metals, specifically gold and silver. The benefits of investing in gold, for example, are varied and can be particularly advantageous in the economic climate Americans have experienced in recent years.
But the benefits of investing in gold haven't exactly disappeared, either. There's a compelling case to be made for investing in the shiny metal this September, too, although the reasons why may be a bit different than there were when inflation was surging. Below, we'll detail three big benefits of gold investing this September that both beginners and savvy investors should know now.
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3 big benefits of gold investing this September
Not sure if an investment in an alternative asset like gold is worth it this September? Here are three big benefits to acting now:
The potential to earn a quick profit
The price of gold started at $2,063.73 per ounce on January 1. But as of September 4, it was around $2,490.70 per ounce – a more than 20% rise in less than a year. And that's lower than what it's been in recent weeks but with the potential to hit $3,000 per ounce or higher, according to some experts. While gold is considered more of a safe-haven asset versus an income-producing one, now presents a rare opportunity to potentially earn a quick profit with the metal. However, investors will need to be proactive and look for cheap ways to buy in to maximize their returns. If they start shopping around for the right dealer, however, they could earn a quick profit by buying and selling the metal now.
Ease of sale
Gold demand tends to be consistently high, making it easy to sell and buy. But with a higher price – and the potential for the price to continue to rise in the months ahead – it may be easier to sell right now. And if you buy in bulk, you may be able to get a reduction on the price and then sell it at a higher price. That noted you'll want to be judicious with how much you buy if you intend to sell it immediately. Gold is generally considered a long-term investment in which your ability to earn big returns should be viewed in context compared to the portfolio protection and diversification gold is better known for.
Portfolio protection as the market evolves
The stock market has performed well when inflation news has been positive but it's also been a bit rocky lately amid concerns over unemployment and other factors. And it's bound to have some ups and downs when the next unemployment and inflation reports are released later this month. It makes sense, then, to offset some of the effects felt by your stock and bond investments with gold, which tends to maintain its value and even rise in price when your other assets look shaky. So consider getting invested in gold this September ahead of these inevitable market shifts. Just be sure to keep your gold investment limited to 10% of your overall portfolio to prevent crowding your other assets at the same time.
The bottom line
The right timing behind any investment choice is a personal one. But this September could be a great time for investors to turn to gold. With the potential to earn a quick profit with the metal high right now, many would benefit from getting started with gold this month. Thanks to this rising price it will be easier to sell than usual, all while providing some much-needed portfolio protection in the interim as the market shifts. Just be sure to carefully weigh the pros and cons of gold investing to truly ensure that it's the right move for you this month.
