3 great reasons to invest in gold this fall
Labor Day weekend marks the unofficial end of summer and the start of the fall season. A turn of seasons always marks an opportune time to reflect on the past and look forward to the future. In today’s economic climate, it also provides investors an opportunity to take a closer look at their bottom line. With inflation still humming in the background, and the prospect for interest rate relief uncertain, many Americans find themselves looking for any edge they can get.
This is why many have turned to gold. Historically, gold is a reliable way to protect your money in the face of larger economic headwinds. Considered a safe-haven asset for centuries, it’s taken on additional significance in recent months amid general economic uncertainty, bank failures and other concerns. With this context, there are some great reasons to invest in gold this fall.
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3 great reasons to invest in gold this fall
Here are three great reasons why investors should turn to gold this fall.
Inflation could rise yet again
Following months of encouraging signs that inflation was finally cooling, it actually rose by 3.2% in July, tempering the enthusiasm of many economists. And while it’s too early to tell if that report was an anomaly or an indicator of wider economic pain to come, many are now tentative about the short-term outlook.
Fortunately, gold has a reputation for providing a solid hedge against inflation. When inflation rises, the purchasing power of the U.S. dollar falls, but gold tends to remain steady, providing investors with a reliable alternative. While most experts recommend limiting your investment to no more than 10% of your portfolio, that percentage could prove particularly helpful this fall, especially if the next inflation report again shows poor progress in the battle against inflation.
Prices are lower now
Gold prices hovered near a record high earlier this year but have since come down a bit, making now a good time to get in at a better price. Gold was around $2,050 per ounce in April, according to the World Gold Council, but has since dropped to $1,940 (approximately) at the end of August.
That’s not a steep drop (gold prices tend to remain relatively stable), but it is lower than what could have been secured just a few months ago. And if inflation rises yet again this fall, the price of this safe-haven asset is likely to climb upward with it. But if you get in now, you’ll pay less while still obtaining the protection gold provides, should the economy endure more troubles later in the year.
Your portfolio may need diversification
While investors shouldn’t make any hasty moves, they should also be continually monitoring their portfolio for performance and opportunities to improve. And the fall could be a good time to check on your investments ahead of the holidays and an uptick in spending.
Are your investments performing as well as they should be? Do you need to cut back on some stocks or move some money into others? Or are you over-leveraged with one particular type and can use protection that gold can provide? Only you know the answers to these questions, but don’t be afraid to take a closer look at performance — and consider diversifying with a gold IRA or other type now.
The bottom line
You should always keep an eye on your savings and investments, but especially now. If you haven’t paid as close attention as you should have over the summer, use the fall to re-evaluate your portfolio. And consider adding some shine with a gold investment. Gold can be a great way to hedge against inflation, particularly if it ticks up again (as it did in the most recent Labor Department report). But it’s also priced slightly lower now than it had been in the spring, making now a better time to get involved. Finally, your portfolio may need some diversification, and by adding it in the right amount now, gold can help provide just that.
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I have been writing professionally for over 20 years and have a deep understanding of the psychological and emotional elements that affect people. I’m an experienced ghostwriter and editor, as well as an award-winning author of five novels.