4 smart gold investing moves beginners should make
Gold has long been considered a safe and reliable investment. Whether it's in the form of a piece of jewelry, a bar or coin or simply in your IRA, gold has many benefits for investors of all ages. However, like all investments, there are better ways to approach the precious metal than others. These approaches are particularly important to know for beginners, who may not know as much about gold as some savvier, more experienced investors.
By understanding these nuances — and by applying them to a prospective gold investment — beginners will improve their chances of maximizing their return. They'll also understand the limitations of gold investments, thus improving their understanding of the wider economic environment.
4 smart gold investing moves beginners should make
Here are four smart gold investing approaches beginners should make.
Research all options
Gold investing, as mentioned, comes in many types. This can be as simple as buying a gold bar from Costco or as complex as getting involved with gold stocks and gold futures. Many prefer to invest in a simple gold IRA. However, to understand which gold option is best for you, you'll first need to know what's out there.
Learn more about gold IRAs here today.
Limit your investment percentage
Gold has many benefits, but it shouldn't be your primary form of investing. It shouldn't even be half of your portfolio. Most experts advise you to limit your gold investment to 10% or less of your overall portfolio. How much you should invest will be determined by personal factors, goals and your overall investment horizon. But it should almost always be limited to that range.
Understand the income opportunities
Stocks and bonds can generate income and should be invested in with that in mind. Gold, on the other hand, is less of an income-generating asset and more of a protection for your overall portfolio. While you can, in theory, make money from gold investing, it will take a significant amount of time and the returns you'll secure are likely to be lower than what you would have got elsewhere. So understand the realistic income opportunities a gold investment can provide and invest your money accordingly.
Get started now
If you're looking to invest in gold now, November 2023 is a good time to get started. While the gold price forecast isn't exactly clear, the general trajectory is upward with current gold prices hovering around $2,000 per ounce currently. So if you get in now, you'll likely see some rises to the price in the near term. But gold can also act as a hedge against inflation and a great diversifier for your portfolio, both of which can be helpful in today's economic environment.
The bottom line
Gold investing can be beneficial for beginners if they make certain moves when starting out. This includes but is not limited to, researching all of their potential gold investment types and limiting their investment to 10% or less of their overall portfolio. But it also includes a better understanding of the potential income a gold investment can generate and timing an investment to maximize the returns and protections the shiny metal can provide.
