January is a good time to reassess last year’s investments, particularly in light of any changing market conditions.
If the market is in a different place than it was a year ago (or your finances or goals are), you might think about making a change — investing in a new asset, reducing your exposure in another, or just changing up your strategy in some other way.
If moving into a safer asset is something you’re eying, a gold investment may be an option to explore. It can also be a smart investment in other scenarios, too.
If you think you could benefit from investing in gold then start by requesting a free wealth protection kit to learn more about this unique opportunity.
Why do you invest in gold?
Here are just a few reasons people generally invest in gold.
It’s a safe haven
Gold tends to hold its value over time, and it doesn’t experience the volatility that other types of investments come with. This is due to its inherent limited supply and its inability to be printed or reproduced, as other types of securities can be.
For these reasons, gold has long been considered a safe haven. When other assets are declining in value, gold tends to hold steady or even rise — helping investors safeguard their wealth even through hard economic times.
It’s a good hedge against inflation
Gold has also long been considered a smart hedge against inflation. When inflation rises and the buying power of the dollar falls, gold’s value holds constant or, many times, even improves. This makes it a smart place to park wealth and insulate it from those inflationary impacts.
As Richard Gardner, CEO of financial technology firm Modulus Global recently told CBS News, “It has historically overperformed during times of inflation.”
If you think you could benefit from the protection gold may offer against inflation then start by requesting a free wealth protection kit to get started.
It diversifies your portfolio
Gold doesn’t tend to be a huge moneymaker, but it does allow you to spread your investments out across different asset classes. This makes it a smart way to protect yourself from the ups and downs of other, more volatile sectors.
If you have all your money in stocks, for example, and the stock market takes a dip, you’d lose a significant amount of wealth in a short time period. If you had your money partially in the stock market, partially in real estate, and partially in gold, on the other hand, you’d be somewhat insulated from a major setback in any category. In short: gold helps diversify your portfolio.
Its value can rise during recessions
The value of gold tends to rise during recessions or other challenging times. This is because when the stock market or other securities start to see volatility or drop in value, investors turn to gold for safety. As more and more flock to it, its supply goes down, and the price goes up.
Case in point: At the height of the Great Recession, gold’s value jumped nearly 13% in a single year, according to the Bureau of Labor Statistics.
If you’re looking for an investment you can easily sell off and turn into cash, gold is one of the few. There’s always interest in gold, silver, and other precious metals, and it doesn’t take a ton of time or effort to offload them. Most importantly, you can generally expect it to hold its value (at least in the long run).
If you think you could benefit from investing in gold then consider starting with Goldco or use the table below to compare some top gold investing companies now.
Other gold considerations
There are many gold benefits to consider. If you want safety, liquidity, diversification, and protection from inflation and volatility, it may be a smart move to invest in gold. You can do so by purchasing physical gold bullion, bars, or coins, opening a gold IRA, or using one of the gold investment companies recommended above.
If you’re on the hunt for a wealth-builder, though, gold usually isn’t it. While there are times when gold’s value increases quite a bit, it’s not usually considered a high-return investment.