If you’re finding yourself constantly checking financial news and asset prices throughout the day, it could be a sign of nerves. That’s understandable. Many investors are jittery right now, given the uncertainty in the market.
So what is your next step? How can you ease some of those nerves? Gold could be the solution, and in this guide, we’ll explain why.
Read our Labor Day investment tips and why gold bars are the best choice for your money this September.
Why Investors Consider Gold a Safe Haven
If you talk in investor circles, you’ll find many comments about gold being a safe haven. Is this true, and if so, why? Let’s examine the facts.
The Value of Gold: a Historical Take
Looking at the history of any asset is vital for an investor, and doing so with gold will tell you why it’s favored as a safe choice. Gold has historically maintained its value and weathered economic storms that have struck other assets like stocks or currencies. Gold often operates independently of stocks or economic activity, so if you look at any economic chart over time, you’ll see it doesn’t align with recessions. That decoupling makes it a vital hedge when choosing a stable option for your investment portfolio.
Gold as a Tangible Asset
Some assets, like derivatives, can be complex and abstract, and many are intangible.
In contrast, you can hold a gold bar in your hands. It’s simple to understand as a commodity, and the physical aspect also makes it uniquely safe. You can’t hack someone who is holding onto a gold bar.
Gold: Historical Prices
Gold prices have a fascinating history. Here are some of the key highlights from past years to help you understand more about the price and why gold remains popular with investors.
The 1970s
In the 1970s, currencies like the dollar had ties to gold under the remnants of the Bretton Woods system, also known as the gold exchange standard.
However, in the early 1970s, the U.S. abandoned the relationship between the dollar and gold. When that happened, U.S. prices soared for the rest of that decade, partly because of inflation.
1980s and 1990s
This period saw the gold price fall and stabilize. That reflected an era of economic growth in the U.S. and overseas, marked by lower inflation compared to the 1970s.
Why Investors Choose Gold Bars Over Coins
When investors are looking to purchase gold, they often debate between gold bars and gold coins. The decision between the two primarily depends on the investor’s investment level and goals. Gold bars are heavier and more expensive since gold is priced by the gram or ounce. They are preferable for those seeking a reliable, long-term investment. On the other hand, gold coins tend to offer more liquidity, allowing for greater flexibility with investments. Some individuals also collect gold coins for their historical significance.
Gold Investment and Portfolio Diversification
Seasoned investors understand the importance of diversification. Diversifying one’s portfolio helps manage risk by investing in different asset classes. Gold is a valuable asset for diversification because it often moves in the opposite direction of stocks and other economic indicators. This inversely correlated movement makes gold an ideal addition to a diversified portfolio.
Adding gold to a portfolio can help mitigate risks and provide stability during times of economic uncertainty. Additionally, gold tends to retain its value and appreciate during periods of high inflation, making it a reliable asset for long-term investment.
Investing in Gold for Retirement Planning
Gold is also a popular choice for retirement planning due to its stability and ability to preserve wealth over time. When considering retirement investments, it’s essential to diversify to reduce risks associated with market fluctuations. Gold offers a way to diversify retirement portfolios, providing peace of mind and liquidity compared to other assets.
Investors can incorporate gold into their retirement strategy through one-time purchases or gradual investments over time. Consulting with a financial advisor can help determine the best approach based on individual retirement goals and financial circumstances.
How to Buy Gold Bars: A Step-by-Step Guide
Purchasing gold has never been easier, thanks to the easy buying arrangements we’ve created at the U.S. Gold Bureau. Here’s how you can buy gold:
1. Choose Your Preferred Option
On the website, you’ll find a range of gold options, including coins, bars, and various weights, starting as low as one gram.
That means it’s perfect for any investor who wants to get started but has a limited budget. It’s also ideal for gold investors who want to add to their collection.
2. Store Checkout
We’ve modeled our buying process on any other eCommerce platform, so it’s familiar and straightforward. Using our secure checkout, you’ll complete your payment and delivery or storage options.
3. Delivery or Storage
You have the option of using secure storage for your new gold asset. The U.S. Gold Bureau uses the highly secure facility at the Texas Bullion Depository. You also get insurance to have complete peace of mind that your gold asset remains in safe hands.
Investing in Gold: Labor Day Investment Tips
As Labor Day approaches, consider making a strategic investment in gold bars. Geopolitical tensions, uncertain economic conditions, and market volatility make gold a favorable asset for investors looking to hedge against risks. With ongoing geopolitical conflicts and economic uncertainties, the value of gold is expected to rise, making it a prudent investment choice.
Now that you’ve read our Labor Day investment tips and why gold bars are the best choice, it’s time to take the next step. Begin by signing up for our free precious metals investor guide available at U.S. Gold Bureau, the trusted and safe way to invest in gold online.
