Here’s When It Makes Sense To Invest In Gold

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Gold prices marginally up monday Prices fell after a US jobs report ended a one-month decline on fears the Federal Reserve will keep higher interest rates – although whether it’s a safe haven for recession-wary investors is in doubt. .

important facts

Gold is generally seen as a safe haven for investors at times when other markets and economies are facing challenges, and during times of inflation gold is seen as a hedge against it – when inflation As interest rates begin to trail, investors seek to put their money into more stable investments.

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Gold can also act as a hedge against recession when stocks fall and investors start flocking to gold and its value increases, as noted in one. reports by the Bureau of Labor Statistics.

While other metals are also available to investors, gold has been a more consistent performer — especially compared to silver, which is more volatile and could suffer economic downturns because it has more industrial uses, according to one reports from Morgan Stanley.

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Gold can be purchased to diversify one’s portfolio because it tends to increase in value when paper investments, such as stocks and bonds, decline in value, even though gold is more volatile in the short term.

For those who want to keep their money safe, gold can be a good investment because it tends to appreciate when the value of the US dollar declines due to inflation, and the real yield on 10-year Treasuries declines. Is. According JP Morgan Wealth Management for investment strategy.

How to invest in gold.

There are three ways for buyers looking to invest in gold. Gold Bullion Gold bars and coins can be purchased online through licensed retailers, although investors are responsible for their own storage. For those who are not interested in buying physical gold, gold-exchange-traded funds (ETFs) allow a buyer to gain exposure to gold as an asset class. Another way to invest in gold is by buying gold-related stocks, such as mining companies, just as you can buy shares of technology companies.


In the last 50 years – when President Nixon removed the gold standard to reduce inflation – gold was seen as a hedge against inflation. But data shows that the ratio of gold prices to the Consumer Price Index is as volatile as any other asset reports By Wall Street Journal, And it hasn’t always proven to be a reliably safe bet. research on Duke University It also shows that gold only serves as an inflation hedge for a large period of time, while its real price fluctuates like any other asset.


Gold and silver have long been a way for scammers to dupe unsuspecting victims into buying the precious metals at vastly inflated prices. Usually they use scare tactics like economic recession and more recently economic recession Epidemic To persuade people to invest in their precious metals. Commodity Futures Trading Commission (CFTC) has a consultant Notifying people not to withdraw cash from their retirement accounts to invest in gold, silver and other precious metals without consulting a financial advisor. CFTC has too guidelines How to spot scammers looking to sell gold bullion and coins and “collectible” coins that are difficult to verify in authenticity and hold at market value.

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