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Over the last few years, more and more investors have turned their attention to gold. This uptick in interest has been due, in large part, to inflation. As prices for everyday items started to climb, and interest rates were raised to try and temper them, investors began looking for safer places to put their money. Gold, known for its stability during tough times, became an attractive option.
The surge in investor demand then led to an uptick in the price of gold — a trend that sustained and shifted into overdrive over the last few months. Gold hit its first record price of the year on March 8, and just over a month later, the price climbed to another new high. That resulted in more demand for gold by investors, leading the prior record to be eclipsed in late May — a record that was then surpassed in mid-August.
But here’s where things get interesting. Inflation is cooling, which can lead to a downturn in gold prices. That’s not what’s happening this time, though. Despite a cooling inflationary environment, gold prices have continued their upward march and just reached a new milestone of over $2,525 per ounce. So why are investors still buying in and should you follow the trend? That’s what we will explain below.
Don’t miss out on the uptick in gold prices. Start investing in the precious metal today.
4 benefits of buying gold right now
There are a few big benefits of gold investing now amid record price surges, including:
The potential for further price appreciation
Despite reaching multiple highs this year, many analysts believe that gold still has room for growth. Factors such as increasing demand from emerging markets, limited new gold discoveries, and the challenges of extraction could contribute to sustained price appreciation in the long term. In addition, the growing industrial applications of gold suggest a promising future, especially with the increase in technological uses for the precious metal.
It offers unique protections for your portfolio
While inflation may be cooling, the global economic outlook remains uncertain. Geopolitical tensions, trade disputes, and other related issues can cast shadows over financial markets, making gold a valuable asset for diversifying and safeguarding an investment portfolio.
Gold’s low correlation with other asset classes makes it an effective hedge during times of market volatility, offering protection against losses from traditional investments like stocks. By including gold in a diversified portfolio, investors can potentially mitigate risks and enhance long-term returns.
Gold can hedge against currency fluctuations
As central banks worldwide grapple with monetary policies, currencies face increased volatility. Investing in gold can serve as protection against currency fluctuations, reducing the risk of significant losses due to unexpected devaluations or economic turmoil. Gold’s status as a universally recognized store of value and its inverse relationship with traditional currencies make it an ideal hedge in times of economic uncertainty.
It’s easy to buy and sell
Gold assets are widely available in various forms, making them accessible for investors with different preferences. Whether purchasing physical gold through dealers or digital assets like gold stocks and ETFs, the ease of buying and selling gold adds convenience to owning this valuable asset.
The bottom line
The recent surge in gold prices above $2,500 per ounce marks another significant milestone in the precious metal’s history. Despite reaching record highs, the enduring benefits of gold ownership, including potential price appreciation, portfolio protection, currency hedging, and ease of trading, make it a compelling investment choice in today’s financial landscape.
Getty Images
Over the last few years, more and more investors have turned their attention to gold. This uptick in interest has been due, in large part, to inflation. As prices for everyday items started to climb, and interest rates were raised to try and temper them, investors began looking for safer places to put their money. Gold, known for its stability during tough times, became an attractive option.
The surge in investor demand then led to an uptick in the price of gold — a trend that sustained and shifted into overdrive over the last few months. Gold hit its first record price of the year on March 8, and just over a month later, the price climbed to another new high. That resulted in more demand for gold by investors, leading the prior record to be eclipsed in late May — a record that was then surpassed in mid-August.
But here’s where things get interesting. Inflation is cooling, which can lead to a downturn in gold prices. That’s not what’s happening this time, though. Despite a cooling inflationary environment, gold prices have continued their upward march and just reached a new milestone of over $2,525 per ounce. So why are investors still buying in and should you follow the trend? That’s what we will explain below.
Don’t miss out on the uptick in gold prices. Start investing in the precious metal today.
4 benefits of buying gold right now
There are a few big benefits of gold investing now amid record price surges, including:
The potential for further price appreciation
Despite reaching multiple highs this year, many analysts believe that gold still has room for growth. Factors such as increasing demand from emerging markets, limited new gold discoveries, and the challenges of extraction could contribute to sustained price appreciation in the long term. In addition, the growing industrial applications of gold suggest a promising future, especially with the increase in technological uses for the precious metal.
It offers unique protections for your portfolio
While inflation may be cooling, the global economic outlook remains uncertain. Geopolitical tensions, trade disputes, and other related issues can cast shadows over financial markets, making gold a valuable asset for diversifying and safeguarding an investment portfolio.
Gold’s low correlation with other asset classes makes it an effective hedge during times of market volatility, offering protection against losses from traditional investments like stocks. By including gold in a diversified portfolio, investors can potentially mitigate risks and enhance long-term returns.
Gold can hedge against currency fluctuations
As central banks worldwide grapple with monetary policies, currencies face increased volatility. Investing in gold can serve as protection against currency fluctuations, reducing the risk of significant losses due to unexpected devaluations or economic turmoil. Gold’s status as a universally recognized store of value and its inverse relationship with traditional currencies make it an ideal hedge in times of economic uncertainty.
It’s easy to buy and sell
Gold assets are widely available in various forms, making them accessible for investors with different preferences. Whether purchasing physical gold through dealers or digital assets like gold stocks and ETFs, the ease of buying and selling gold adds convenience to owning this valuable asset.
The bottom line
The recent surge in gold prices above $2,500 per ounce marks another significant milestone in the precious metal’s history. Despite reaching record highs, the enduring benefits of gold ownership, including potential price appreciation, portfolio protection, currency hedging, and ease of trading, make it a compelling investment choice in today’s financial landscape.
