Gold prices are high. Here are three moves investors can make now.
Gold prices hit a record high in early March and the precious metal broke that price point again later in the month. But if investors thought April would see a cooling down, the first day of the month proved otherwise as gold hit yet another record, selling for $2,259.29 per ounce.
That rise wasn't unpredictable as investors looking for a hedge against inflation and a reliable portfolio diversifier turned to the precious metal in recent years. Investing in gold hit an 11-year high last September and the price of gold has mostly risen since. Against this backdrop, then, investors should consider making some smart moves to get the most of this unique asset. Below, we'll break down three moves investors can make now with gold prices high.
Start by exploring your gold investing options online to learn more about this unique opportunity.
3 moves investors can make with gold prices high
Here are three moves investors should consider making with gold prices climbing higher.
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If gold prices are continually climbing upward, then, it makes sense to buy in now before the price becomes out of reach. While $2,259.29 may seem high, it could be the cheaper option if gold breaks $2,300 per ounce in the weeks to come. Some experts foresee it rising even higher in the upcoming years, making now an opportune time to buy in.
With factors like inflation, geopolitical turmoil and a presidential election cycle all likely to influence the price of gold further, it may be smart to invest in the precious metal now before further volatility puts it out of reach for many investors.
Get started with a gold investment online today.
Monitor the price
While gold isn't typically considered to be a traditional income-producing investment, with today's growing prices it can be. But you won't know that unless you monitor the price closely for opportunities to sell (or buy more).
That said, the price of gold tends to move slowly over time, so the recent changes could prove to be an anomaly. But if you're looking for an opening to buy high and sell higher, now may be the right time to act.
Don't overinvest
It can be tempting, when monitoring the rising price of any asset, to overinvest to reap the benefits of high interest and growing demand. But gold doesn't work like stocks and bonds, and even with an uptick in price, should still generally be limited to a relatively small portion of your portfolio. Most investors would recommend limiting the gold portion of your portfolio to 10% or less. This will allow your portfolio to benefit from the inflation-hedging benefits gold can provide while also experiencing the big returns other assets can offer.
The bottom line
Gold prices are rising right now, giving investors understandable motivation to act quickly. And many should. But, like any investment, the approach here is critical to get right. By promptly getting started, investors can ensure that they won't be outpriced in the days and weeks to come, but they should then monitor the price for opportunities to buy more (or sell off their existing investment). Finally, they should resist the urge to overinvest in the precious metal, as it could come at the expense of losing benefits other assets can provide, even with gold's currently elevated price.
