Gold bars and stock market
There are consistent benefits to buying gold, especially in times of inflation.

Getty Images/iStockphoto

When it comes to good financial planning, investors must do a series of calculations. The stock market, inflation, interest rates, and domestic and international politics are all influential factors. Investments should be adjusted accordingly.

For a time of inflation and unequal market performance, investors are looking (or should be looking) at their finances even more carefully than usual. Part of this analysis should include alternative opportunities that might not have been considered in a stronger market.

In this environment, some people may turn to gold. Whether purchased wholesale or through an IRA, gold can potentially provide unique financial support to investors. But the timing of any purchase is important, as is the amount purchased.

If you’re considering gold now, consider talking to a professional. They can answer all your questions and help you get started with a free Wealth Protection Kit.

Is gold a good investment?

There is no standard answer to this question. Instead, the advantages of gold depend on the personal situation and the long-term objectives of the investor. If you belong to one (or more) of the categories below, you might want to search for gold now.

Investors looking for help with inflation

Most Americans are seeking relief from the pain inflicted by high inflation for decades. Gold can potentially help.

“Over time, the value of gold tends to increase as the purchasing power of fiat currencies decreases,” Harry Turner, founder of The Sovereign Investor, an education website for investors, recently explained. the investment. CBS News.

“That’s because, unlike paper money or other types of investments, gold is a physical asset that can be stored and traded. As long as people continue to view it as a valuable commodity, the gold price will likely remain a good hedge against inflation.”

“Inflation occurs when the value of the dollar or another currency falls, usually because governments print too much money,” notes a report. “In contrast, gold has been considered valuable for thousands of years, and its supply is set by the ability of miners to extract it from the ground.”

For more context, look 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 soared to 13.58% in 1980. But during the same period, the value of gold rose from $35 per share to $850 per share, notes a recent report.

If you think you could profit from buying gold in an inflationary market, talk to a professional now to get started.

Investors who wish to diversify their portfolio

If you are an investor who falls into the above category, you probably belong to this one as well. Traditional investments in 2022 have been spotty or declining so far this year. So it probably makes sense to spread the risk and put (some) money into other investments.

Edward Karr, the founder of US Gold Corp., recently told CBS News that a minor amount spent on gold mining stocks or physical gold could potentially help “reduce the overall risk of a portfolio and potentially increase long-term returns”.

Instead of tying up all your money in stocks and bonds, spreading it among different types of investments might better help you manage your risk. By investing money in gold – in addition to your other investments – you can increase the likelihood that your money will grow. Use the table below to explore your options.

Investors looking for a physical asset

In an environment where volatility is king, some investors can fall back on proven methods. Physical gold could be an alternative. Stocks, bonds, IRAs, and even a 401(k) can be tied to banks and lenders and be subject to fees and withdrawal considerations. They can also be difficult to access when needed.

But physical gold, whether purchased in bars, coins or some other form, is easy to transport, store and, if necessary, sell. If you are an investor who prefers cash, physical gold may also be suitable for you.

The bottom line

Investing in gold is beneficial for several reasons, especially when the economy is uneven and economic forecasts are unknown. If you think you could benefit from investing in gold, contact an expert today to get started.