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3 gold investing moves to make with inflation cooling

As inflation continues to cool, it's critical that gold investors approach the metal with the right strategy. Getty Images

Inflation is falling and interest rates could soon, too. That was some of the big financial news this week after the Bureau of Labor Statistics released a report showing inflation falling in May (for the second month in a row) and the Federal Reserve elected to keep the federal funds rate unchanged. While not quite at the Fed's 2% target goal, a continued cooling in the inflation rate is generally good news for the economy and borrowers burdened with higher interest rates.

But what about investors? In recent years many have turned to alternative assets like gold for protection against inflation and as a way to better diversify their portfolio. Is the precious metal still worth investing in as the inflation rate continues to dwindle? Or are investors better served by looking for alternative investments? 

There's a compelling case to be made for investing in gold now, even with inflation cooling. But to increase their chances of success, investors will need to make strategic gold investing moves right now. Below, we'll break down three of them.

Start by exploring your top gold investing options online here.

3 gold investing moves to make with inflation cooling

Here are three strategic gold investing moves to consider making as the inflation rate drops.

Get invested

You can't reap the benefits of a gold investment without first buying in. And while the price of the metal has surged in 2024, it's come down a bit in recent weeks, giving prospective investors a better entry point than they may have received if they acted earlier. That price may drop even further, too, as some investors reconsider investing in an asset arguably best known for hedging inflation. 

As inflation drops, competition may also lessen, providing a rare opportunity to invest in an asset that hit an 11-year high just last summer. And with many top gold companies to choose from online – and big retailers like Costco and Walmart involved as well – it's easy to get invested right now.

Get started with gold online today.

Stay invested

While beginners may be able to get invested in gold at a decent price now, the major benefits will come by staying invested in the precious metal long-term. Gold, despite the recent price activity that could have allowed some to turn a quick profit, is more of an income-protector versus an income generator. 

To get the latter, then, you'll need to buy in now and stay invested for months and possibly years to come. Inflation, after all, is largely cyclical. So by investing in gold today, you'll both add protection to your portfolio this June and ahead of any economic downturns to come. And, in the future, you may even be able to sell it at a significantly higher price than if you got in and out quickly this year.

Pick the right type

Gold doesn't just come in jewelry form or as bars and coins. There are a variety of types to choose from, ranging from gold IRAs to gold ETFs to gold futures, stocks and more. Not every option (or even most) will be right for you. If you're looking for the protection gold can provide against the volatility that stocks and bonds offer, for example, then there are some gold investing types that you should avoid unless you're a savvy investor with a willingness to take risks. 

As inflation cools, it's also important to note the individual effect that cooling will have on each of the aforementioned gold types. So take the time to do your research so that you pick the right type. If you don't, the benefit you thought you were adding to your portfolio could quickly prove detrimental instead. 

The bottom line

A cooling inflation rate may require some investors to readjust their strategy. But that doesn't mean gold still doesn't have a place in a diversified portfolio. It does. Investors just need to be a bit more judicious with how they proceed with the metal. This means getting invested now but staying invested for a potentially longer period. It's also critical to pick the right type, as inflation can affect different kinds of gold investing in different ways. Finally, investors should stick with the traditional advice of limiting gold to 10% or less of their portfolio so that other assets are better positioned to take advantage of what may be an improving economy. 

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