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Considering investing in gold? Such investors can now benefit

Your timeline, goals and existing portfolio can help you decide if gold is right for you.

Busakorn Pongparnit/Getty Images

ongoing InflationRising interest rates and overall Economic uncertainty Many American investors may be rethinking their portfolios this year.

Even beyond larger economic changes, reassess your priorities and risk tolerance when you reach milestones throughout life — such as earning more in your career or Close to retirement – can be a good practice.

Always evaluate your portfolio and goals as well as any new investment choices to determine the right path for you. But for some investors in today’s environment, exploration may have advantages Alternative assets like gold. Gold, in particular, can be a unique asset that makes more sense in some portfolios than others.

Learn more about investing in gold with a free investor kit today.

Types of investors who can benefit from gold now

There are three types of investors who can benefit Adding gold to their portfolio:

Investors who want to limit risk

If you want your portfolio to grow over time, risk is an important factor to balance. The stock market, for example, is inherently risky — but it’s also proven to increase in value over the past few decades.

However, having a mix of low-risk assets in your portfolio can be a good way to help reduce that risk, especially if you want to play it safe given today’s economic challenges.

Adding a small amount of gold can help Limit the risk you are exposed to As an investor. In fact, it has been worth it stability over time and for Maintain standards Even inflation reduces purchasing power. While you won’t see the exponential growth of other markets, gold can be a good way to maintain some stability when you’re facing volatility elsewhere.

Explore your gold investment options with a free information kit today

Investors with long time horizons

In general, young people And new investors accessing their investments decades earlier can make bolder investment decisions. The long timeline gives them room to weather market swings and volatility before using their savings for retirement.

Because gold is a stable asset that can help investors weather downturns in the market, A long-term investment strategy Meaning you can use gold as a stabilizer throughout market ups and downs.

Just remember, gold may be safe but it’s not the best way to grow your money in the long run. consideration A small investment — up to about 5% — of your overall holdings in alternative assets like gold, while you balance other investments to maximize your growth.

Investors are looking to diversify

diversity An important strategy for any investor – a diversified portfolio can help you get through periods of market volatility with assets that rise or hold steady when others fall.

Gold is a good diversifier because it can react inversely to other markets. For example, gold historically holds its value when the US dollar falls During periods of high inflation. In some cases, it may even perform against where the dollar is. Gold can stabilize your portfolio when the stock market falls. While the value of the S&P 500 declines overall in 2022, for example, gold standard Not only has it remained stable but has also grown marginally over the same period.

Learn more about how gold can help you diversify with a free investment guide.

Bottom line

Gold has long been used by investors as a hedge against inflation and a stable investment choice to balance riskier equities and other assets. Depending on your investment goals, adding a small amount of gold to your portfolio can help you weather unexpected weather.

Before you decide, evaluate your existing portfolio and your long-term goals to determine whether gold is right for you, and explore the various options available to gold investors today — from Gold IRA per Gold ETFs And even holding gold bullion.

MoneyWatch: Managing Your Money

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