3 gold investments that experts say could pay off this fall

Investing is tricky, even when the economy is humming along. But with inflation still a concern and interest rates at a 23-year peak now, it's even harder to choose where to put your money. Smart investors spread their funds across different types of assets. This approach, called diversification, helps protect your wealth when markets get choppy. 

Gold is a safe haven that many turn to when they want to add something different to their portfolios. Options are plentiful, but some gold investments may pay off more than others this fall. We asked experts which those could be.

See which gold investment could benefit you here now.

3 gold investments that experts say could pay off this fall

Many experts suggest allocating 2% to 10% of your portfolio to gold for balanced diversification. With that in mind, let's look at three gold investments that could be worthwhile in the coming months.

Gold royalty companies

Gold royalty companies provide a method for investing in gold without the hassle of owning physical metal. These firms use contracts to finance mining operations in exchange for a share of future gold production.

Shawn Plummer, CEO of The Annuity Expert, an online insurance agency in Atlanta, Georgia, thinks these companies could be a smart bet this fall. "Unlike traditional mining stocks, they aren't directly affected by mining costs or operational issues," he explained. This resilience helps them weather market storms better than other gold investments.

Plummer mentioned that he's recommended these to clients looking for consistent income sources with lower risk. These companies can benefit from high gold prices while offering more stability than traditional mining stocks.

Learn more about your top gold investing options online today.

Digital gold tokens

Digital gold tokens are a new way to invest in gold using blockchain technology. Companies offer these tokens, letting investors own real gold without storing it themselves. Plummer sees growing interest in this asset class. "I've seen tech-savvy investors using these tokens as a modern inflation hedge in their portfolios," he said.

As people seek to protect their money from unpredictable price action this fall, digital gold tokens could gain popularity. They blend gold's traditional value with digital flexibility. Plus, their high liquidity is appealing — you can quickly buy, sell or trade your gold holdings as markets shift.

Physical gold

Physical gold could be another solid investment in the coming months, but not all forms are equal.

Plummer points to numismatic coins as a promising option. These rare coins have value beyond just their gold content, often tied to their historical significance or rarity. He notes that these coins can sell for much higher prices to collectors during periods of economic uncertainty — sometimes outperforming standard gold coins in value.

However, Jeffrey Zhou, founder of Fig Loans, a financial institution in Sugar Land, Texas, warns about counterfeit risks in the physical gold market. He advises careful verification of any gold purchase. "I had a client who bought what appeared to be a high-quality gold bar from a trustworthy dealer … it turned out to be a sophisticated fake [and] a significant financial loss," he cautioned.

For a balance of safety and growth potential, Henry Yoshida, certified financial planner and CEO of Texas-based financial services company, Rocket Dollar, recommends gold coins from reputable sources such as the U.S. Mint. "This isn't for everyone, but I'd prefer this within a gold IRA to align with the long-term hold perspective plus long-term tax savings," he advised.

Yoshida sees physical gold as offering "the purest protection" compared to other gold-related investments, especially if you're looking beyond short-term gains this fall.

The bottom line

Focus on your long-term goals. Physical gold might suit mid- to longer-term holdings, while gold royalty companies could offer a mix of stability and growth potential.

As with any investment, approach gold investing with a well-thought-out plan. Yoshida advises against market timing. Instead, he recommends "dollar cost averaging on a set schedule, regardless of market conditions." This means regularly investing a fixed amount, which can smooth out price fluctuations over time.

If in doubt, Yoshida suggests starting with a 2% to 5% position in your portfolio. "Gold is sensitive to macroeconomic factors such as inflation, the federal funds rate and market [sentiment]," he noted. Keep these in mind as you make your regular investments. Most importantly, don't go all-in on gold — consider investing in other precious metals to keep your portfolio well-rounded.