3 big reasons to invest in gold this June
June is often a time when families prepare for summer vacations, barbeques and beach trips. With school out for many children and teens, it's a great time to disconnect and relax. But, this June is also a great time for investors to review their assets for opportunities. With inflation stubborn, if significantly cooled, and interest rates stuck at their highest point in decades, investors need to be shrewd with where they put their hard-earned money. One such place many have turned to recently is precious metals, specifically gold.
Investing in the yellow metal hit an 11-year high last September and interest in the metal has remained hot so far in 2024. As is the case with all investments, however, the timing needs to be just right. And, right now, the timing seems to make sense for an investment in gold. Below, we'll break down three big reasons why you may want to invest in gold this June.
Start by exploring your gold investing options online here.
3 big reasons to invest in gold this June
Considering adding some shine to your portfolio? Here's why you may want to do so this month:
Inflation is still problematic
Sure, inflation has dropped significantly from where it was two years ago at this point in the year. However, the reports released so far in 2024 from the Bureau of Labor Statistics demonstrate that more work needs to be done to get it in check. Inflation only dropped to 3.4% in April – from March's 3.5%. That's more than a full percentage point above the Federal Reserve's target 2% goal. But gold can help.
Gold tends to stay steady in the face of inflation and can and even rise in value during such periods, providing a buffer for the volatile performance of other assets like stocks and bonds. This is a valuable protection to have this June, especially if the next inflation report released on June 12 is yet another disappointing one. So don't wait for the repercussions of that possibility.
The price is rising
With a few exceptions, the price of gold has been on an upward trend all year long, breaking multiple records in the process. Starting at $2,063.73 per ounce on January 1 to $2,337.29 on June 4, according to American Hartford Gold, gold has had a tremendous run this year. That's more than a 13% rise in 2024 and today's price is slightly down from a recent record, meaning that you could have potentially seen an even bigger increase a few weeks back.
That said, if the price continues increasing – as many experts are predicting – it makes sense for investors to get started this June before the cost becomes prohibitive. While gold is typically not considered an income-producing investment as much as a safeguard for your portfolio, the recent rapid price increases may make it a way to generate a quick profit right now. But you'd have to get started right away to realize this rare opportunity.
Political (and geopolitical) concerns are high
With multiple ongoing wars overseas and tensions surrounding a U.S. presidential election season, both political and geopolitical concerns are high right now. In times like these, many investors turn to gold for the protection it can provide and for its consistency when other assets are affected by these factors. And with months to go until the presidential election and the conflicts overseas continuing unabated, this June is a smart time to diversify and boost the protections your portfolio requires.
Learn more about how gold can help your wider portfolio here.
The bottom line
While it's difficult, if not impossible to time an investment perfectly, there are some big reasons to invest in gold this June, specifically. Thanks to persistent inflation and the protection gold can offer against it, a price that many predict will continue to rise and political and geopolitical concerns that gold can hedge against, it makes sense to invest in the precious metal now. Just be sure to keep your investment moderate so that other assets can also perform, as most experts recommending a limit of 10% or less of your overall portfolio.
