Investors have heard a lot about gold following the news this year. high price And the ongoing economic crisis has led More and more people Consider investing in precious metals for the first time.
But all the headlines can be overwhelming for investors. Some days the price rises, some days it falls and some days, it reaches near-historic levels. How do you know when you should invest? In this piece, we’ll look at current gold prices, where the trend seems to be heading, and whether that should affect your investment decision.
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How much is gold per ounce?
The gold spot price — how much gold is being traded for — was $1,975.45 an ounce as of midday on May 22, 2023, according to the World Gold Council. This is in line with its performance over the past few months as investors flock to it safe assets To protect their money from constant economic uncertainty.
In mid-April 2023, the spot price reached $2,048, close to the all-time high of $2,067 set in August 2020. Prices have cooled Little since they are still around the $2,000 mark. and many experts Believe prices will hold steady – if not rise further – in the coming months.
What does this mean for your gold investment plan? Not as much as you might think.
Why gold is a good investment, regardless of price
While it is interesting to watch gold price trends and predict what the future holds, gold is not a get-rich-quick scheme, bought quickly and offloaded quickly for big profits. Instead, the price of gold lies in its ability to ride out market fluctuations long term.
Specifically, gold benefits include:
Hedge Against Inflation: Inflation An inherent part of the economic cycle. During periods of inflation, the value of assets such as cash and stocks declines, but the price of gold tends to rise. This can help conserve your purchasing power.Strong performance during market volatility: When the market is turbulent, Gold is really bright. It is not subject to wild fluctuations in the stock, and it is not devalued by the economic power of the dollar. As a result, it can help you weather the natural ups and downs of the market.Diversity: Because it is inversely correlated with risky assets, gold can be Protect your portfolio These assets lose value when from losses. For this reason, experts recommend keeping 5% to 10% of your portfolio in gold.Liquidity: Should you find yourself in a pinch and in need of extra funds, the gold one Highly liquid assets. You can easily exchange cash, which can be especially useful when inflation lowers the value of the dollar but increases the price of gold.
So, don’t get caught up in wondering how to “time the market”. never mind Gold price when you buyYou will generally enjoy reliable returns and protection against losses if you hold it for a long time.
High gold prices this year have brought this asset to the attention of people who might not have considered it otherwise. However, the current price of gold is only one thing to consider when deciding to invest. Gold offer Numerous benefits For your portfolio, which you can enjoy in the long term regardless of when you buy gold.
When you can definitely maximize your returns Buy when the price drops, it won’t stop you from investing if the price is high. By holding gold as a long term investment, you can reap the benefits regardless of the price in the short term.
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