With the price of gold poised to break yet another record, prospective investors may want to act quickly. Getty Images/iStockphoto
Gold prices have surpassed numerous price records this year, rising nearly 30% from the starting price on January 1st. Gold prices started the year at $2,063.73 an ounce, but have since soared above $2,600 with many investors expecting it to rise. It will soon reach $3,000. This is partly due to gold’s traditional benefits of hedging against inflation (by preserving its value during periods of inflation) and portfolio diversification (when other asset classes underperform).
But for investors to realize real returns, gold, like any investment, must be pursued with a strategic approach and at specific times. And as the economy shifts again thanks to slowing inflation and lower interest rates, investors may want to make their choices now, before November begins. We will explain three of them below.
First, let’s take a look at the top gold investments available here.
3 Smart Gold Investment Moves to Make Before November
If you want to take advantage of gold’s benefits (and rising prices), consider taking the following steps now before November 1st.
consider your options
Gold has different investment types. From gold IRAs to gold ETFs, gold stocks, futures, bars, and coins, there’s probably one type that’s more preferred than others for your portfolio and long-term investment goals. But you won’t know which one (or two) it is until you start considering your options. Some of these types are more suitable for novice investors, while others are more suitable for people with high volatility and high risk appetite. So start researching all these alternatives now to avoid investing in the wrong type.
Learn more about the best gold options online today.
Invest before prices rise
The price of gold is about to set yet another price record. So, once you have decided which type is suitable for your financial situation, don’t hesitate to buy it. Waiting for gold prices to drop in 2024 may be a mistake. Not only has the metal been trending higher year-round, but it has also trended higher historically. A more cost-effective opening may never materialize, and delaying means losing the portfolio protection that gold can provide. To avoid such a scenario, invest now.
limit investment
It can be tempting to overbuy an asset that is breaking price records, as has been the case with gold for most of this year. However, the wise move is to take a traditional gold investment approach despite this price increase. Therefore, limit your investments to a maximum of 10% of your total portfolio. This allows other assets, such as stocks and bonds, to perform as needed and gives your portfolio a layer of protection in case they don’t. And even amid today’s historic price spikes, remember that gold is a long-term investment, not a quick way to make profits or income.
conclusion
If you’re considering investing in gold, this October could be a good time to take action. But before you do, consider all your options and decide which type of gold investment is best for your unique financial situation. However, don’t wait too long to take action, as the price of gold is on an upward trajectory that most experts expect to continue. So act quickly and carefully, such as by limiting gold to no more than 10% of your total portfolio. By making these moves, you’ll be better positioned for gold investment success both in November and in the months that follow.
matt richardson
