Why seniors should invest in gold before 2024
With nagging inflation and interest rates meant to tame it the highest they've been in decades, it's understandable if you're looking for new and innovative ways to protect your money. This interest can be especially strong for seniors and older adults. This demographic is largely dependent on Social Security, retirement savings and income-producing investments. When those are tight - or underperforming like they may be now - it makes sense to explore some alternatives.
One such asset that can help is gold. In fact, investing in the precious, yellow metal hit an 11-year high earlier this year. There are multiple reasons why the investment is appealing now. However, as with all investments, the timing is key. And for many seniors the timing for a gold investment could be beneficial now, before the year is out.
Start by exploring your gold investing options here to learn more about this unique opportunity.
Why seniors should invest in gold before 2024
Here are three major reasons why seniors should consider investing in gold before 2024.
Inflation is still problematic
There was some hope earlier this year that inflation was on a permanent decline. But then it ticked up in July and again in August. And it remained unchanged in September. And while the long-term forecast is generally favorable, comprehensive economic relief is still far off. Against this backdrop, then, seniors should consider a gold investment.
Gold can often hedge against inflation by remaining steady in value even when other assets look shaky. While not the income-producing asset that stocks and bonds are, gold also doesn't (typically) come with the same volatility either. And that's important for any economic climate but particularly now, and especially for seniors who may not have the ability to withstand the economic downturns that younger investors can.
Learn more about investing in gold here today.
Interest rates may rise again
With stubborn inflation comes higher interest rates. And if the Fed doesn't make further progress of getting inflation down to their 2% target goal another rate hike is inevitable. With the benchmark rate already at a 22-year high of a range between 5.25% and 5.50% that will cause even more economic pain for borrowers. Not only will credit become even more expensive but the returns on other investments may underperform. Its in times like this, however, when gold tends to do best.
Data from NASDAQ underlines this argument. The 1970s, for example, began with an interest rate of around 6% but the decade ended with a rate around 14%. However, gold prices during that same decade rose from $35 to $850 per share.
The price of gold could increase soon
The price of gold today is just under $2,000 per ounce. That's higher than the $1,820-$1,830 range from earlier this month but still lower than the approximate $2,050 it was in the spring. So the trajectory is moving upward and relatively quickly at that. So if you want to get in when gold prices are still reasonable - and hope to make a profit in a short period of time - now is a great time to invest in gold.
That said, remember that gold is less of an income-producing asset and more of a reliable way to diversify your portfolio and to keep your other assets protected. So while buying lower and selling higher is a potential advantage right now, it's not the main benefit a gold investment can provide.
Explore your gold investing options here to learn more.
The bottom line
Timing is a key component of any investment. In the waning months of 2023 a gold investment for seniors can be advantageous. Gold can help in the battle against inflation and, historically, has often grown in value as interest rates rose. But the price of gold now is still lower than what it was a few months ago, although it could tick up again soon. By buying in now seniors can get the protection a gold investment provides with the potential for a rise in value to come not too far after.
