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Gold prices are increasing. Is now a good time to invest?

Gold prices are currently at an all-time high.

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last week, gold price pushed up to almost record highs.

This week, gold reached $2,000 for the first time since hitting an all-time high in the summer of 2020 — and some investors believe the price could rise.

“We’ve hit a new all-time high, poised to surpass the old high… set in 2020 at the epicenter of the pandemic,” said Mel Mattison, CFP, financial services professional and consultant.

Historically, investors have flocked to gold during times of weather Economic uncertainty. Consumers today are facing high inflation rate coupled with recent times Turbulence in the banking industrySome may now be turning to the gold market for safety.

If you’re wondering whether gold might be a good investment for you while prices are high, learn more with a free information kit today.

Is now the right time to invest in gold?

Gold prices are at all-time highs this week. Experts say this is mainly due to a few different factors.

First, inflationary pressures may increase investor interest in gold, as it is often seen as a possibility Inflation hedge. Another big reason is that gold trades against the US dollar. When the dollar is strong, gold price Go down – and vice versa.

“The dollar peaked again in September of last year,” Mattison said. “One month later, in October 2022, gold hit a 52-week low. So, this year’s move is all about the dollar.”

According to Barron’s data, the dollar had a trading peak in late September and has fallen about 11% since then. Meanwhile, gold prices have risen nearly 22% since October.

“Investors have had less confidence in the US dollar because of the recent banking crisis,” said Dan Casey, investment advisory representative and founder of BridgeRiver Advisors. “In the background, there are always inflationary pressures, as well as investors thinking that inflation will erode our currency, causing more money to flow into gold.”

But does that mean you should invest?

There are plenty of factors to consider before deciding to add gold to your portfolio. Talk to an expert to decide if gold is right for you.

Should you add gold to your portfolio?

Gold is often seen as a hedge against inflation and can be a good way to do so Diversify your investments.

“Gold often marches to the beat of its own drummer,” Mattison says.

Diversifying with different types of assets, including gold, can be a good way to weather periods of uncertainty in certain markets by reducing your own investment risk. No investment is guaranteed, but a diversified portfolio can help protect itself in the long run.

Before you decide to invest, make sure you understand your own risk tolerance, the complexity of your portfolio, and how new investment avenues may change your long-term investment strategy. there Advantages – Disadvantages Every investment type, including gold.

Learn more about your options with gold investing with a free information kit today.

MoneyWatch: Managing Your Money

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