Why you should invest in gold before the next inflation report
The next inflation report is expected on March 12 and, with it, heavy implications for the broader economy. While the reports for December and January showed inflation cooling, they were hotter than many economists would have liked. And inflation is still above the Federal Reserve's target 2% goal. That said, an encouraging inflation report could affect markets — and, potentially, speed up the timeline for interest rate cuts.
It could also affect your investments. While the inflationary environment of the last two years has affected borrowing costs and savings rates, it's also changed the investment landscape. Gold investing, for example, surged to an 11-year high last fall.
Thanks to its ability to hedge against inflation and diversify portfolios, it's clear why gold investing interest has climbed. But should you invest before the next inflation report? Or are you better off looking for an alternative asset? Below, we'll detail three reasons why you should consider investing in gold today.
Learn how a gold investment can help you now.
Why you should invest in gold before the next inflation report
Here are three reasons why you should invest in gold before the March inflation report.
Inflation is still elevated
Even if next week's report shows inflation dropping in February, it's highly unlikely that it will have dropped to the level where the Fed wants it. So a cautious investment in gold can still be beneficial. That's because gold tends to maintain its value and can even rise in price during inflationary periods (it's already hovering near a record high). And if the inflation report is poor, historic trends show a typical (but not guaranteed) drop in the stock market and a rise in gold performance.
Don't wait for that to happen. Get invested in gold here now.
Your portfolio can still be diversified
If you were one of the many Americans who saw their retirement savings damaged in recent years, then you already know how important it is to diversify your portfolio. So why wait any longer?
By investing in gold now, you can add some much-needed protection — which could be as beneficial as soon as the inflation report is released. Just be careful not to overinvest for protection, either, as a successfully diversified portfolio caps gold at 10% or less (depending on your investor profile).
Inflation will return
Even if inflation dwindles to the Federal Reserve's goal (or lower), it's inevitable that it will spike again at some point. Since no one knows when that point is, it makes sense to be proactive and boost your protections now.
Inflation is cyclical and will be back at some point, but by investing in gold now, you'll be better prepared to deal with its negative repercussions when it resurfaces.
Learn more about how gold can help with inflation today.
The bottom line
With another inflation report on the horizon, investors may find it beneficial to review their portfolio and beef up their protections with gold. It's worth doing now because inflation is still higher than experts would like — and because your portfolio likely needs some diversifying. But with the inevitability of inflation returning at some unknown point in the future, it can be advantageous to invest in gold now. This will better protect you both this month and in the months and years ahead.
