How gold can help investors in an uneven economy
Inflation slightly eased in October but prices jumped more than 7% compared to the same time in 2021. Core prices, which exclude volatile food and energy costs, rose 6.3%.
Many Americans are struggling to navigate an unpredictable stock market, often dropping and rising based on the news cycle (like the midterm elections and U.S. inflation data). Stock market losses have also wiped out trillions of retirement savings so far this year. And some experts still believe a recession is looming, which could cause even steeper declines.
So, it's no surprise that investors are looking for every potential advantage they can gain in this economic environment. One unique but potentially beneficial route is gold. Gold can be purchased in bulk or added to your IRA.
You should begin by speaking with a gold expert now. They can help you get started with a free wealth protection kit.
How gold can help investors in an uneven economy
With the current economic forecast uneven, gold may be worth exploring. Here are two major ways it can help investors now.
As a hedge against inflation
This may be the most timely benefit of buying gold. With inflation remaining stubborn, now is a good time to invest in something that can keep - and potentially improve - its value.
"A rise in inflation or inflationary expectations increases investors' interest in purchasing gold and, therefore, drives up its price; in contrast, disinflation or a drop in inflationary expectations does the opposite," the Federal Reserve Bank of Chicago noted.
"Over time, the value of gold tends to rise as the purchasing power of fiat currencies falls," Harry Turner, the founder of The Sovereign Investor, an investment education website, recently explained to CBS News.
"This is because, unlike paper money or other types of investments, gold is a physical asset that can be stored and traded. As long as people continue to see it as a valuable commodity, the price of gold is likely to remain a good hedge against inflation."
If the interest you're earning from your other investments hasn't been much lately, then explore your gold options to see how you can start making up the difference. It's better to act now before the value rises and the cost of buying gold becomes prohibitive.
As a way to diversify your portfolio
The old way of investing hasn't been particularly successful as of late. Accordingly, it may be time to spread your investments a bit to better optimize your chances of success.
That doesn't mean you need to radically change your investments, though. Even 5% in gold can potentially help.
Edward Karr, the founder of U.S. Gold Corp., recently told CBS News that a minor amount dedicated to gold mining equities or physical gold could potentially help "reduce an overall portfolio's risk and potentially increase the long-term returns."
Instead of tying up all of your money in stocks and bonds, spreading it among different investment types could better help you manage your risk. By putting some money into gold - in addition to your other investments - you'll increase the likelihood of having your money grow. Use the table below to explore your options.
The bottom line
Gold presents a unique opportunity for investors looking for relief during tough economic conditions. It may not be the best option for everyone but it's certainly worth exploring, particularly when the return on traditional investments has been subpar.
Speak with an expert now to see if gold is right for you.
