The gold price forecast is unclear. Is now still a good time to invest?
There aren't many valuable investments to pursue this fall. Inflation has cooled but is still above the Federal Reserve's target 2% goal. And the benchmark interest rate currently sits at a 22-year high — and it could tick up higher in the final months of the year. Against this backdrop, borrowing costs have skyrocketed and the returns on some traditional investments have been uneven.
With these factors in mind, many have turned to precious metal investing. In fact, investing in gold hit an 11-year high earlier this year. That said, gold prices have been volatile as of late and the long-term forecast for where they could be headed into 2024 is unclear. So is now really a good time to invest in gold — or should prospective investors be considering their alternatives?
Start by exploring your gold investing options here now to see how it could benefit you.
Is now still a good time to invest in gold?
While the benefits of any investment are specific to the individual, there are some wide-ranging and compelling reasons why it still may be worth investing in gold now. Here are three to know.
Prices could rise again soon
The price of gold today, October 25, 2023, is $1,963.55 per ounce. That's down from May 2023's $2,028 price point but up significantly from the $1,821 per ounce gold was priced at the start of October.
That said, gold is considered a safe haven asset, particularly attractive during times of inflation and a poor economic climate. So it's possible, if not likely, that the price of gold will rise soon again as demand ticks up. If inflation remains stubborn and interest rates head up, then interest in the yellow metal may follow.
With this understanding, it may make sense for some to invest now while prices are still reasonable and the income-producing benefits of an investment are right on the horizon.
Learn more about your gold investing options here now.
It can help with inflation
Gold interest has risen this year for many reasons, but perhaps the most important is due to its ability to hedge against inflation. Gold has historically been known for the support it can provide during inflationary periods such as our current one. That's because when inflation is elevated, the value of gold tends to remain steady and can even rise in price as it has numerous times so far in 2023.
So, with inflation still above the target goal, an investment in the yellow metal can make sense now. Just make sure to invest in the right amount (most experts recommend limiting it to 10% or less of your overall portfolio).
Gold can diversify your portfolio
Branching off the benefit gold can provide against inflation, it can also diversify your portfolio during any economic period. Stocks and bonds, after all, can produce income but they can also lose it quickly. That volatility can be better balanced by adding some shine to your portfolio.
Gold typically has an inverse relationship with other assets so when stocks and bonds look shaky, gold can help keep your overall portfolio steady.
Learn more about how you could benefit from a gold investment.
The bottom line
With gold prices increasing now but the forecast for future increases uncertain, now can be a good time to invest in the precious metal. But the potential for quick gains isn't the only reason to invest in gold now. The asset can also provide some much-needed protection against the ongoing effects of inflation and it can help diversify your portfolio, which can be valuable both now and into the future.
