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Investing in gold in 2023? 5 things to know right now

If you're saving for retirement, consider putting your qualifying gold bars and coins into a gold IRA. Getty Images/iStockphoto

For investors in 2023, gold may seem like an appealing investment. Not only has its value increased, but the precious metal can be a safe haven during periods of economic uncertainty.

This year, investors continue to feel the effects of high inflation, as well as a potential looming recession and rising interest rates. If you're looking for a way to safeguard your portfolio in today's environment, you might turn to gold.

But if you're thinking about buying gold this year, you'll get the most from your investment by understanding how you can maximize its value to help reach your long-term financial goals. Start learning more about gold investing today with a free information kit.

Investing in gold in 2023? 5 things to know right now

Here are five things that any new gold investor should know before buying in:

The amount of gold matters

Gold shouldn't make up your entire portfolio. In fact, experts we've spoken with recommend dedicating no more than 5% to 10% of your overall investments to the precious metal.

While gold can increase in value over time, it won't grow your portfolio the way more traditional investment sources — like the stock market — can. With only a small amount invested in gold, you can reap its benefits while keeping growth-focused investments for potential long-term gains.

Explore more benefits of gold investing now with a free investors kit

Gold can diversify your portfolio

Many investors use gold to diversify their portfolios. Setting aside a portion of your portfolio to an asset like gold that moves independently of the stock market can help you weather periods of downturn. 

Recessions and other periods of market volatility are expected throughout any investment timeline. But gold's value doesn't generally move with the stock market, and it can even increase when stock market values plummet. By diversifying with gold, you may be able to mitigate your losses during periods of downturn. 

Gold's price is high this year

Gold's value has grown by more than 5% in 2023 alone. In fact, earlier this year, gold's price nearly topped record highs and was over $2,000 per ounce. While it's back down to about $1,950 per ounce as of August 2023, gold's value has still risen this year. 

If you're a new buyer, you may pay more for the amount of gold you want than you would have previously — but that shouldn't stop you from buying. For one, some experts believe gold's price could continue to climb this year and next. Plus, gold's long-term value can help you benefit over time, no matter the economy or current price. 

Find out more about gold's value today with a free investment guide

Gold is best for long-term investments

Gold's price tends to rise steadily over time, but it can also fluctuate over the short term. In just the past three years, for example, gold has reached its all-time high price value of about $2,070 and dipped to a low of about $1,600.

Those fluctuations are one reason why gold can be better suited for long-term investors. Plus, gold's benefits as a hedge against inflation and source of stability during market downturns can help your portfolio most over time through changing market cycles. If you only invest for a short time, you may not enjoy the same value from your gold investment

There are different ways to buy gold

Before you buy gold, think about the best type of gold investment for you. If you want to invest directly in the value of gold, you might choose a physical gold investment in the form of bars or coins. Retirement-minded investors may even put their gold bars and coins in a gold IRA, which allows you to keep the precious metal for retirement while enjoying IRA tax advantages.

You can also choose to invest indirectly. One popular gold investing option today is gold ETFs or other funds that are gold-adjacent, like stocks in gold mining companies, for example. While outside factors can influence the performance of this type of gold investment beyond just gold's spot price, this could be a simple way to diversify without needing to own physical assets.

Learn more about gold investing options with a free information kit.

The bottom line

Many investors may be turning to gold in 2023, but it pays to do some research before deciding to buy in. Gold may be a good long-term diversifier for your portfolio, but whether it makes sense for you depends on your individual investment plan.

Before you decide, consult a trusted expert like a financial advisor who can help you understand whether gold could work for your investment goals. You can get started by learning more about the precious metal today with a free investors kit

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