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3 top reasons to invest in gold

Piggy bank on shiny golden background
The benefits of investing in gold are consistent but also relative to each individual's personal financial situation and long-term goals.  Getty Images

When it comes to savings and traditional retirement vehicles, many investors look for any edge they can get. This is especially true during the current economic environment with stubborn inflation and a recession potentially looming in 2023. During these times, in particular, it's especially important to make the right investment choices, even if they come in varying degrees and methods

One method that some investors may pursue, albeit in a lesser form than more traditional savings options, is gold

Gold can come in physical forms like coins or it can be directly inserted into your IRA as part of a diversified portfolio. Either form can potentially protect investors from severe economic headwinds.

If you're currently an investor considering gold then start today with a free wealth protection kit so you have a better understanding of this unique financial opportunity.

3 top reasons to invest in gold

The benefits of investing in gold are consistent but also relative to each individual's personal financial situation and long-term goals. Here are three top reasons to invest in gold. 

  1. It's easy to buy, store and sell
  2. It can help with inflation
  3. It can diversify your portfolio

It's easy to buy, store and sell 

As mentioned above, gold can come in a physical form or it can be inserted into a retirement account like a 401(k) or IRA. Either way, you won't need to do much work to get started.

"While your metals are owned by your IRA, they are securely stored in a depository," Goldco, a gold investment company, explains. "Once you are eligible to begin taking distributions at age 59 ½, you can choose to take your distributions either as a cash payment or in the form of precious metals."

"When you open a Precious Metals IRA, all of your precious metals will be stored in a secure vault at an insured depository," Goldco continues. "The IRS requires physical metals funding a Precious Metals IRA account be maintained by a depository and administered by the custodial financial institution."

Speak to an expert to learn more about how to buy, store and sell gold now.

It can help with inflation

While gold's ability to battle inflation is inconsistent, with the right amount in your portfolio, it can potentially help and even act as a hedge against rising costs. 

"Inflation occurs when the value of the dollar or another currency declines, usually because governments print too much money," a report noted. "By contrast, gold has been seen as valuable for thousands of years, and its supply is fixed by miners' ability to pull it from the ground."

From a historical perspective, look back to the 1970s. The decade was hit hard by inflation with an average interest rate of 5.84% in 1970, according to NASDAQ data. That rocketed to 13.58% by 1980. But during the same time frame, the value of gold rose from $35 per share to $850 per share.

Does that mean gold will always successfully battle inflation? Not necessarily. But with trillions in retirement savings already wiped out this year in the stock market, it's certainly worth investigating as a potential alternative investment source. 

It can diversify your portfolio

Similarly to its ability to help with inflation, gold can help diversify your portfolio. So, in the current market, your investments may be performing poorly but a small investment in gold could help offset the losses suffered elsewhere.

"Diversification is a strategic way of managing your investment portfolio to include various types of investments to reach specific financial goals over the long term," Goldco explains. "A well-diversified investment portfolio can offer you the potential for improving returns without subjecting yourself to high-risk investments that are limited in focus." 

Just be aware that a diversified portfolio with gold in the mix isn't always a guarantee.

"A diversified retirement portfolio can't promise huge gains or prevent losses, but it is a strategy that some personal investors, financial planners, and fund managers use to create balance-and one such way to effectively diversify can be by investing in gold," Goldco notes.

The bottom line

Gold, due to its flexibility and possible assistance with inflation and portfolio diversification, can be an advantageous alternative for investors. 

If you're considering buying gold - or simply want to find out more about this investment opportunity - reach out to an expert now

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