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9 big signs that you should invest in gold bars and coins

Gold ingot surrounded by golden coins
It's important to get the timing right when you're investing in gold bars and coins. Jesus Ayala Photography/Getty Images

When it comes to building wealth, many investors focus on adding traditional assets to their portfolios, whether it's stocks, bonds, ETFs or mutual funds. But these traditional assets aren't your only options. You can — and perhaps should — also add precious metals, like gold, to your portfolio.

Gold has long been regarded as a reliable store of value and a hedge against economic uncertainties, which is a large part of why gold investing has grown in popularity in recent years. By investing in gold, you'll also help to diversify your investments and safeguard your wealth — and there are lots of other unique benefits to consider, too. 

There are also various ways to invest in gold, including gold ETFs, gold IRAs and gold stocks, making it easy to find one that matches your risk tolerance and investment goals. Holding physical gold in the form of bars and coins has its own set of advantages, though — which is why so many investors choose this route. If you're planning to buy into gold bars and coins, however, you'll want to get the timing right, so make sure to keep an eye out for the following signs.

Learn more about your top gold investing options here.

9 big signs that you should invest in gold bars and coins

Not sure whether it's time for you to invest in physical gold? These signs can be good indicators of a prime opportunity to buy in:

It's a period of economic uncertainty

One of the primary reasons investors turn to gold is during times of economic instability. If there are concerns about inflation, currency devaluation or geopolitical tensions, gold tends to shine as a safe-haven asset. In turn, these types of economic markers can signal that it's a good time to start putting money into gold bars and coins.

Find out how gold investing could benefit your portfolio here.

You have portfolio diversification goals

Diversification is a key principle of successful investing, so it's important to focus on that and regularly assess your portfolio for any changes that need to be made. If your portfolio is heavily concentrated in stocks, bonds or real estate, it could be a sign that it's time to add gold in the form of bars and coins. This can help spread risk and reduce the impact of market volatility on your overall wealth.

Interest rates are lower than normal

When interest rates are low, traditional income-generating assets like bonds may offer minimal returns. Investors seeking alternative options often turn to gold, as it has historically provided a store of value and potential for capital appreciation. So, if interest rates are declining, it could be a smart time to put some money into gold bars and coins.

Currency value is weakening

If currency is experiencing a decline in value, gold can act as a hedge. Investing in physical gold allows you to preserve wealth in a tangible form that is not directly tied to the fate of any one currency. In turn, you should keep a close eye on currency value. If it's declining, it could be a sign that it's time to invest in gold to hedge against those types of losses. 

Central banks are buying in

Monitoring the actions of central banks can also be a signal for investors who are interested in putting money into gold bars and coins. If central banks are increasing their gold reserves, it can indicate a lack of confidence in other financial instruments — and could indicate that individual investors should weigh whether to invest in gold as well.

The historical performance has been strong

Examining the historical performance of gold during economic downturns can provide valuable insights. If gold has historically demonstrated resilience and maintained its value during challenging economic times, it may be an opportune moment to invest.

You are looking for portfolio insurance

Gold is often referred to as "portfolio insurance" because it tends to perform well when other assets are underperforming. So, keep a close eye on what the market is doing and keep an ear out for how experts expect the trends to go. If you're in a market downturn and want a way to protect your portfolio from significant losses, that could indicate that gold bars and coins are a suitable addition to your portfolio.

Your goal is long-term wealth preservation

Investors with a focus on preserving wealth for future generations may find gold bars and coins appealing. Physical gold can be passed down as a tangible asset, providing a lasting store of value. So, if you're starting to focus on preserving your wealth for the long haul, it could be an indicator that this is the right time to buy into gold bars and coins.

Market sentiment indicates increased interest

Monitoring market sentiment is crucial for any investor — and that's as true for gold as it is for any other investment asset. If there is a widespread belief that economic challenges are on the horizon, leading to increased interest in gold, it might be a compelling signal for you to consider adding gold bars and coins to your investment portfolio.

The bottom line

While investing in gold bars and coins may not be suitable for everyone, these signs can serve as valuable indicators to help you make informed decisions. Before making any investment, though, it's essential to conduct thorough research, assess your financial goals and weigh all of your investment options to ensure that adding gold to your portfolio aligns with your investment strategy.

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