Tag Archive for: investing in gold

With inflation still on the rise and talk of an inevitable recession, you may be wondering if now is a good time to invest in gold. Gold is considered a hedge against inflation, as its prices continue to rise despite the state of the economy. Since the price of gold often works directly against the cost of the U.S. dollar, now is the best time to buy gold.

Investing in Gold and Hedging Inflation

This is one of the best times to start investing in gold since inflation continues to be on the rise. Gold hedges inflation because it preserves wealth in an environment where the U.S. dollar is declining in value. However, as with any investment, you should also be aware of the risks involved. The price of gold fluctuates slightly every day, but there are trends you can analyze and follow to determine when the best time to sell your investment is. You should consider a long-term horizon if you are looking for portfolio diversification in gold investing.

Types of Gold Investments

If you’re thinking about investing in gold, you may be wondering what your options are when it comes to trading the commodity. Don’t worry, you don’t have to have a room full of gold coins or bars like Scrooge McDuck. There are several ways to invest in the commodity, and you can either physically own gold or not.

Investing in Gold 2023

Exchange-Traded Funds (ETFs)

An ETF is a type of pooled investment that operates similarly to a mutual fund. But unlike a mutual fund, you can trade ETFs the same way that regular stocks can. You can also track not only your gold investments, but you can also monitor your gold investing strategies with an ETF.

Mutual Funds

Mutual funds are another form of “mutually” owned stocks, bonds, and other forms of investments. They offer a variety of strategies and styles for investing. They are often ran by professionals who manage the funds, decide which securities to invest in, and when to sell them.

Gold Stocks

Gold stocks are also another way to invest in gold without buying a physical commodity. When investing in gold stocks, you invest in the companies that mine and refine gold. Stocks of course come with risks since the prices of the company’s shares directly tie to the price of gold. Additionally, they are also based on the company’s profitability and expenses, which leads to even more risks.

Physical Gold

Buying physical gold is a great way to get a direct hold on the commodity. It’s less expensive than investing in EFTs. and can be easier when it comes to buying and trading. Physical gold, however, comes with its own set of challenges such as needing a place to store the gold, and determining which type of physical product is best to invest in. The three main types of physical gold investments are bullion, jewelry, and gold.

If you want to learn more about investing in gold, contact one of our professionals. Ready to start buying or selling? Check out our current stock of items.

With a possible recession coming and interest rates continuing to hike to bring down inflation, it’s hard to tell where the price of gold is going in 2023. Last year, there was just as much uncertainty with gold pricing. At first glance, 2022 was hopeful as we started to recover from the pandemic. However, the war in Ukraine and the energy crisis led to interest rates continuing to skyrocket and have changed earlier predictions for the cost of gold. Our current predictions are based on multiple factors, but it’s important to keep in mind that these are just predictions and anything could happen.

How do you predict the price of gold?

The shortest answer is that you can’t. What we can do is look at past prices and the current economy to make predictions based on trends. The U.S. dollar, inflation and interest rates, and geopolitics are some factors we can examine to see how the price of gold may be affected.

The U.S. Dollar

Since gold is priced in dollars, the current value of the U.S. dollar has a direct impact on the price of gold.  Since gold is a commodity with an intrinsic value, that value changes over time. Gold is a direct competitor to other interest-bearing assets since it does not generate interest itself. Therefore, when the price of the dollar is high, the price of gold tends to go down.

Price of gold and the U.S. dollar

Inflation and Interest Rates

Globally, inflation has steadily continued to rise over the last year. Interest rates have been hiked to try to bring inflation back down, but so far, there has been little success. If inflation does somehow start to fall, but the interest rates continue to rise, gold’s value will decrease even further.

Geopolitics

With the unexpected war raging in Ukraine, restrictions that have been placed on Russia have greatly impacted the global economy. We’ve already seen strains on gas prices, worries over energy rationing in Europe, and the biggest concern is an impending war that expands beyond Russia and Ukraine. There are no doubts that these geopolitics will also affect the price of gold over the next year.

Get Started Investing in Gold

You may be wondering if now is a good time to start investing in gold. With inflation on the rise and an impending recession, now may be the perfect time to start your gold investment journey. Since gold acts as a hedge against inflation, investing now can guarantee protection from the declining purchasing power of money. Learn more about the different types of gold investments to decide how to get started.

 

The Current Price of Gold

You can check the current price of gold in real-time here.