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When it comes to financial investments, the timing needs to be right. If you get started too late with a certain stock, for example, you may miss out on big returns. But if you get started too early, the return on your investment may be negligible. The timing needs to be right to earn substantial returns without sacrificing capital that may have been better utilized elsewhere.
In recent years, with decades-high inflation and interest rates, many investors have turned to precious metals like gold and silver. Investing in gold hit an 11-year high last fall due to a myriad of reasons. But the benefits of investing in the precious metal, like any other asset class, are time-sensitive.
Fortunately, right now is a great time for many to get involved with gold. Below, we’ll detail three reasons why you should consider investing in gold this spring.
Start learning more about your gold investing options here now.
Why you should invest in gold this spring
Here are three reasons why you should invest in gold this spring season.
Inflation is still problematic
Hope that inflation was back under control and that interest rate cuts would soon be coming has dimmed in the first few months of 2024 following a series of disappointing inflation reports. The latest report even showed inflation rising slightly, seemingly pushing off rate cuts that many had hoped for as early as this month.
Against this backdrop, it makes sense to invest in gold. The precious metal is known for its ability to hedge against inflation, generally maintaining or even rising in value as other assets like stocks and bonds underperform. It can also diversify a portfolio otherwise made up of too many similar investments, providing a buffer for when there’s greater volatility.
These features are beneficial to have in any market, but with the latest inflation news and a Federal Reserve unlikely to issue rate cuts soon, it’s particularly advantageous to invest in gold this spring.
Start protecting your portfolio with gold here.
The price is rising
While gold is not a conventional income-producing investment, it can make investors money over time. And this spring could be the start of one of those periods. The price of gold just hit a record high of $2,160 per ounce earlier this month. While that’s come down slightly since, gold appears to be on an upward trend, making now an opportune time to buy in before getting priced out.
And if it continues to head higher, it’ll be easy to sell and turn a profit from, as well. With the next Fed meeting set for this week, global turmoil and a tumultuous presidential election season underway — all factors that can influence the price of gold — it makes sense to act now before the cost becomes prohibitive.
It’s easy to get started
Gold is ubiquitous and easy to invest in. Multiple gold IRA companies can help you get started right now but even big retailers have joined the fray. Last summer, Costco started selling gold bars. Walmart now does as well. And Costco branched out to sell silver coins earlier this month. So there’s no shortage of ways to invest in gold and other metals right now, often online and from the comfort of your own home.
Learn more about getting started with gold here.
The bottom line
While gold can be a smart investment in any economy, the benefits of the precious metal time particularly well for investors this spring. Because inflation is still problematic, the price is rising and it’s readily available, many may want to add gold to their larger portfolio right now. Just go into the process clear-eyed and focused as most experts recommend limiting gold to 10% or less of your portfolio to truly secure the benefits the precious metal can provide.
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
