We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.
During times of economic uncertainty and high inflation, many Americans may reconsider their investments. Whether you have a 401(k), a Roth IRA or some other form of retirement savings, the volatility of the stock market and recent world affairs has left a mark.
The S&P 500 closed down 1.5%, at 3,585 on September 30, its lowest level since the 2020 crash around the start of the COVID-19 pandemic and its third consecutive losing quarter. Trillions of retirement savings have been wiped out in 2022.
Amid this environment, investors may be turning to gold. Gold is traditionally considered a hedge against inflation as its value tends to raise in an uneven economy. If you're wondering if now's the right time to buy gold, or if you're considering investing in the future, then act now. You can start with a free wealth protection kit.
3 reasons to buy gold now
Here are three reasons you should consider buying gold now.
- Gold acts as a hedge against inflation
- Gold is easy to sell
- Gold can diversify your portfolio
Gold acts as a hedge against inflation
This may be the most timely benefit of buying gold. With inflation recently hitting its highest rate in decades now is a good time to invest in something that can keep - and improve - its value.
"A rise in inflation or inflationary expectations increases investors' interest in purchasing gold and, therefore, drives up its price; in contrast, disinflation or a drop in inflationary expectations does the opposite," the Federal Reserve Bank of Chicago noted.
If the interest you're earning from your other investments (and your savings accounts) hasn't been much lately then explore your gold options to see how you can start making up the difference. It's better to act now before the value rises and the cost of buying gold becomes prohibitive.
Gold is easy to sell
Unlike some other investment vehicles, gold is simple to liquidate. There's always a demand for gold - whether it be in coins, bars (bullion) or some other form. The interest and purchasing power will remain consistent.
The value of gold, as mentioned above, will fluctuate based on a number of factors. But if you're looking for an investment that you can sell easily if you wind up needing cash then gold is a good alternative to pursue.
Gold can diversify your portfolio
If you're an older investor who wants a steady, reliable income from your savings then gold may not be the right move. But for younger people looking to diversify their portfolio, it makes sense to pursue gold.
Instead of tying up all of your money in stocks and bonds, spreading it among different investment types could better help you manage your risk and return. By putting some money into gold - in addition to your other investments - you'll increase the likelihood of having your money grow.
Use the table below to explore your options.
The bottom line
Make sure you're fully aware of the pros and cons of this investment opportunity. But don't wait too long, either. What may be an affordable way to invest today could quickly become an expensive one tomorrow.
Have more questions? Speak to a financial adviser who can help guide you or reach out to a gold expert who can further explain the benefits of this unique investment.
Thanks for reading CBS NEWS.
Create your free account or log in
for more features.
