3 good times to invest in gold

People have been buying and investing in gold for centuries. It's a great way to preserve long-term wealth, and there are many ways to go about it — including physical gold, gold IRAs and gold stocks. 

But gold is a unique commodity. It can have many benefits, so long as the investment is timed right.

If you think you could benefit from investing in gold then start by requesting a free wealth protection kit to learn more. 

3 of the best times to invest in gold

Are you looking to buy gold? There are many times when a gold investment strategy may be smart. Just keep in mind, these are general recommendations; for more specific investment recommendations, speak to a professional advisor or expert in the field.

When inflation is high and a recession is looming 

Gold is a smart way to preserve your wealth when inflation is high. This is because gold value tends to hold steady over time, allowing you to park your wealth — and preserve it — despite any weakening of the dollar.

It also tends to have a negative correlation with stocks, so when the stock market falls — as in a recession, investors flock to gold, and its value rises.

"It has historically overperformed during times of inflation," says Richard Gardner, CEO of financial technology firm Modulus Global. "Traditionally, one of the best times to invest in gold is when a recession is looming large."

A recession could very well be in the cards for next year. Goldman Sachs has the probability at 35% by year's end. 

A top gold company like Goldco can help you get started investing in gold now. 

When you want to diversify your portfolio 

Most investment professionals would recommend a diversified portfolio — one that's not too invested in a single sector or type of commodity. For one, this reduces risk. If one type of investment dips, having money in other markets protects your remaining wealth. 

Diversification also allows you to better endure changing market conditions since you don't have all your eggs in one basket. Gold, for example, can be a good way to add stability to your portfolio. In challenging economic times, it preserves your wealth and ensures a downturn won't upend your long-term goals.

"In investing, having a balanced portfolio can be important in the long run," said Frank Trotter, president at Battle Bank. "Precious metals, in particular, gold, can be great additions to a well-diversified portfolio."

When you want flexibility and liquidity

If being able to cash in on your investments quickly is important, gold can be a wise investment. Unlike many other assets, like stocks or real estate, for example, gold can quickly be converted to cold, hard, usable cash. 

It's also very easy to pull out of and pivot to another investment if that's the route you decide to go.

"There are certainly other assets that can provide a similar, long-term hedge against inflation, such as real estate, but many of these do not have the ability for instant convertibility like gold, or the simplicity of purchase," Trotter says. "Purchasing gold from a reputable dealer allows an investor flexibility to make adjustments as time goes by, increasing or reducing the exposure as the situation warrants."

The bottom line

If you're looking for the highest returns possible, buying gold isn't usually the path. Most investors use gold as a way to safeguard their wealth — not as a method for growing their wealth. If returns are your No. 1 priority, higher-risk investments will likely be more effective. Consider speaking to an investment professional for guidance on your specific situation.

You can also request a free wealth protection kit to learn more about this unique investment opportunity.