Gold has represented the pinnacle of wealth for thousands of years. From the real gold bars held at Fort Knox to the animated gold coins Scrooge McDuck dives into during the opening credits of “Ducktales,” gold still has important cultural and monetary value.
But in the age of online trading, buying gold might seem a little old-fashioned. Thankfully, buying gold in 2023 doesn’t necessarily mean burying gold coins in the backyard or stuffing a safe full of gold bullion.
So what are the more modern options for someone interested in diversifying their portfolio with gold and how can younger investors benefit? The answers to these questions may surprise you.
If you’re considering investing in gold then start by requesting a free wealth protection kit to learn more about this unique investment opportunity.
Why young people should invest in gold now
As an investor, it’s important to build a diversified portfolio that can handle the ups and downs of the market. To do that, you should generally invest in various securities. If you put all your eggs in one basket, you’ll be more susceptible to market crashes. You may also lose out on potential gains.
When investing, you may buy securities that have opposite goals. For example, stocks generally do well when the economy is flourishing, but other types of securities do better at other times.
Now that the economy is in a state of inflation, many investors are looking for ways to mitigate their losses. Gold as a commodity is often seen as a hedge against inflation because the price of gold often rises when inflation is high. And because gold is still utilized in countless areas, it’s relatively stable.
Young people may benefit from buying gold because they generally have to invest for decades before they can retire. That gives gold enough time to act as a stabilizing force in their portfolio.
How young people can invest in gold
There are a few different ways you can invest in gold. First, you can buy physical gold. This option is the least liquid, which means it is harder to sell when you need to. It’s also hard to store physically and comes with a multitude of security concerns.
Instead of buying physical gold, you can buy gold exchange-traded funds (ETF). ETFs can be bought just like individual funds. If you have an IRA, you can purchase shares of gold ETFs. These are much easier to sell and you don’t have to worry about someone stealing your gold. Gold ETFs may invest in gold bullion or in gold futures contracts.
You can learn more about gold IRAs by requesting a free wealth protection kit from Goldco today!
When should you invest in gold?
Better times to invest in gold, as mentioned, include when you’re younger and when you’re looking for some buffer against inflation. Generally, according to GoldSilver, the better months to invest in gold are January, March and early April. June and early July can also be advantageous.
Just remember, when you invest in a commodity like gold, you’re only investing in a tiny sliver of the overall market. That’s why you should never put all your money into gold. Instead, think of it as dessert in your investing meal. It’s best to have a balanced diet, so too many sweets can lead to an unhealthy portfolio.
Try to limit gold to 5% of your portfolio. More than this may negatively impact the diversification of your portfolio. Every quarter, check in and calculate the percentage of gold in your total investment portfolio. If it’s more than 5%, then hold off on buying gold.
Have more questions? Request a free wealth protection kit here now to learn more!