For millennia, gold represented the pinnacle of wealth. From the real gold bars stored at Fort Knox to the animated gold coins that Scrooge McDuck dives into during the opening credits of Duck Stories, gold still holds important cultural and monetary value.
But in the age of online shopping, buying gold can seem a little old-fashioned. luckily buying gold in 2023 doesn’t necessarily mean burying gold coins in the backyard or stuffing a safe full of gold bars.
So what are the more modern options for those interested in diversifying their portfolio with gold, and how can younger investors benefit? The answers to these questions may surprise you.
If you are planning to invest in gold then start by requesting a free wealth protection kit to learn more about this unique investment opportunity.
Why young people should invest in gold now
As an investor, it is important to build a diversified portfolio that can handle the ups and downs of the market. To do this, you usually have to invest in different securities. If you put all your eggs in one basket, you will be more susceptible to market crashes. You may also lose out on potential benefits.
When investing, you can buy securities that have opposing goals. For example, stocks usually do well when the economy is booming, but other types of securities do better at other times.
Now that the economy is in a state of inflation, many investors are looking for ways to mitigate their losses. Gold as a commodity is often viewed as hedge against inflation because the value of gold often rises when inflation is high. And because gold is still used in countless industries, it is relatively stable.
Young people can benefit from buying gold because they usually have decades to invest before they retire. This gives gold enough time to act as a stabilizing force in their portfolio.
How young people can invest in gold
There are several different ways to invest in gold. First, you can buy physical gold. This option is the least liquid, which means it is harder to sell if needed. It is also difficult to store physically and comes with many security issues.
Instead of buying physical gold, you can buy gold exchange-traded funds (ETFs). ETFs can be bought just like individual funds. If you have an IRA, you can buy shares of gold ETFs. They are much easier to sell and you don’t have to worry about someone stealing your gold. Gold ETFs can invest in gold bullion or gold futures contracts.
You can learn more about gold IRAs by asking free wealth protection kit from Goldco today!
When should you invest in gold?
The best times to invest in gold, as mentioned, include when you’re younger and when you’re looking for some buffer against inflation. In general, according to Gold and Silver, the best months to invest in gold are January, March and early April. June and early July can also be beneficial.
Just remember, when you invest in a commodity like gold, you are only investing in a tiny part of the overall market. This is why you should never invest all your money in gold. Instead, think of it as the dessert in your meal. It is best to have a balanced diet, so too many sweets can lead to an unhealthy portfolio.
Try to limit gold to 5% of your portfolio. Moreover, it can negatively affect the diversification of your portfolio. Every quarter, check and calculate the percentage of gold in your total investment portfolio. If it is more than 5%, then refuse to buy gold.
Have more questions? To learn more, request a free wealth protection kit here!