The best times to buy gold
Gold can help investors looking to diversify their portfolios. It's also helpful for those concerned about the volatility of the market.
The benefits of buying gold are multiple and significant. While one of the oldest investment forms around, however, the optimal timing around purchasing gold is not as well known.
Just like any other financial investment, there are better times to act than others. In the current economic environment, with the market unpredictable, it may make sense to make a move now.
If you think you would benefit from buying gold, then get started by requesting a free information kit.
Not sure when to buy gold? Read on to learn more.
The best times to buy gold
Here are three of the best times to buy gold.
When inflation is high
This may be the most well-known reason to buy gold.
Gold can act as a hedge against inflation -- as inflation rises so, typically, does the value of gold. And since inflation remains stubborn, now may be a good time to invest. With the performance of the stock market uneven, gold can be a steady and reliable alternative. Not all financial advisers agree on this method (and it's possible gold won't always rise when inflation does). Still, it may be worth pursuing if you're nervous about future economic conditions.
"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 has previously explained.
"Inflation occurs when the value of the dollar or another currency declines, usually because governments print too much money," a Money.com report notes. "By contrast, gold has been seen as valuable for thousands of years, and its supply is fixed by miners' ability to pull it from the ground."
By requesting a free information kit from Goldco you can better decide if gold is a good investment for you.
When you want to diversify your portfolio
Because of gold's ability to help with inflation, and its unique qualities, it's considered a reliable way to diversify your portfolio. Your investments should not all go to gold, but a portion of your portfolio can benefit from being tied to the precious metal.
Instead of tying all your money up in one investment type, you can spread out the risk and reward ratio by putting some into gold. This can potentially help you better manage your risk and return on investments. Just don't put all of your eggs into the gold basket. Most financial advisers would recommend limiting your gold investment to 3% to 5% in total.
When you're a younger investor
Gold is often thought of as an investment older people make. But it actually may be beneficial for younger investors, too. This group can purchase gold and let it sit to the side where it can rise (or fall) based on economic conditions. Younger investors also have more time to get a return.
Instead, senior investors may benefit more from income-generating investments (like stocks that can pay them dividends). Real estate investments may also be a more reliable source of monthly income.
This is not to say gold should be totally avoided by older investors, just that it may make more sense to buy in larger quantities when younger.
Other considerations
Gold, like any financial investment, should be approached with care and understanding. When investing in metals don't just look at the bottom line to see what's performing best at the moment. There are other factors to keep in mind, including taxes, risk and general cash flow.
Adding gold into the mix will make your investments more complex but, potentially, also provide a greater return on investment.
