Should you invest in gold before the next inflation report?
Timing an investment can be a fruitless exercise but, when done right and with a little luck, it can reap major benefits. Those who decided to invest in gold in February and early March, for example, have earned major returns in recent weeks with the price of the precious metal hitting multiple record highs during that time. The price of gold on April 9 was $2,353.15 per ounce, but if you had purchased it in early March, you would have paid $2,160 for the same amount of gold — a nearly $200 difference.
So timing is important, as many gold investors can attest after investing in the precious metal hit an 11-year high last September. That's largely due to the benefits gold can provide during inflationary periods, but with another inflation report scheduled to be released this week, many may be wondering if they should invest in gold now.
You can easily explore your top gold investing options online here.
Should you invest in gold before the next inflation report?
Here are three reasons why you should consider investing in gold before the April 10 inflation report.
The price could rise again
Hope was high that inflation was on a permanent decline at the end of 2023, but the reports that have been released in 2024 have been discouraging with inflation rising to 3.2% year-over-year in February. That's more than a full percentage point above the Fed's target 2% goal.
Because of its ability to hedge against inflation (by often maintaining and rising in value when inflation erodes the value of other assets), many have turned to gold in recent years. And if this week's report shows another increase, more investors could turn to the precious metal yet again, causing its price to increase.
Get invested in gold now while the price is affordable.
Your portfolio could use the protection
Gold isn't traditionally known as an income-producing asset (despite the recent price volatility). But it is known as a hedge against inflation and portfolio diversifier, both of which can be beneficial to have at any time but especially if this week's inflation report is weaker than hoped for.
Remember that a poor inflation report won't just affect gold — it'll likely have a wide, adverse effect on multiple assets. But if you get invested in gold now you can help buffer some of that influence.
It's easy to do so
To get optimal timing on your gold investment you'll need to be proactive and ready to move. Fortunately, gold is ubiquitous now and there are multiple, simple ways to invest in the precious metal to take advantage of its timely benefits.
You can invest online with top gold companies right now — or you can use big retailers like Costco or Walmart to buy gold (and silver) right now. You can use local dealers, too, although the price of physical gold there may be higher than if you went with the aforementioned alternatives. This ease of investing is key for getting in early and selling at a premium price.
Explore your gold investing options online here to learn more.
The bottom line
With another inflation report imminent, investors looking for alternative assets should strongly consider turning to gold right now. By acting now, they can position themselves to buy gold at a lower price than they may be able to get if they wait for the new inflation report to influence its price. But they'll also secure a beneficial hedge against inflation and useful portfolio diversification. And because of the growing demand for the precious metal, they can do so quickly and efficiently with a variety of sellers. As with all investments, however, it's important to weigh the pros and cons of gold so that you can truly reap the benefits of a timely investment in the metal without damaging your overall portfolio.
