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Friday, June 14, 2024

A government shutdown is looming. Should you invest in gold now?

As if a rise in inflation over the summer and decades-high interest rates weren’t problematic enough for millions of Americans, there is now strong speculation that the government could soon shut down. An October 1 deadline to continue to fund the government is looming, but there’s no deal yet agreed to. While a shutdown won’t touch programs that already have permanent funding, it’s likely to cause some concerns on the market and will leave many investors even more worried than they already have been.

In times like these, many investors turn to gold. While not as well known as many other investments, the shiny, precious metal has unique benefits, particularly during volatile and unpredictable economic conditions. But should you invest in gold now — or are you better off reconsidering some other investments instead?

Start by requesting a free gold information kit here to learn more about this unique opportunity.

Should you invest in gold now?

Many people invest in gold during times of economic crisis or uncertainty. And, it’s easy to understand why. Here are three reasons why you may want to start investing in gold now.

Portfolio diversification

A government shutdown — combined with elevated interest rates and inflation — could be bad news for the stock market. But, if you’re invested in gold, it may not be completely bad.

Gold is known for its ability to diversify your portfolio and protect against the erosion of the U.S. dollar. So if the government shuts down and your portfolio of stocks and bonds looks shaky, gold is likely to stay firm and maintain its price, thus protecting your investments from a total shock.

Learn more with a free gold investors kit here.

Help with inflation

Gold is arguably best known for its ability to hedge against inflation. And after it rose twice over the summer —in July and another time in August — investors would be wise to add some protection to their portfolio in September. Just make sure to invest in the right amount (most experts would advise keeping your gold portion to 10% or less of your overall portfolio). Otherwise, you could risk losing out on better (albeit more volatile) income-earning opportunities.

To maintain liquidity

Stocks and bonds will make you money, and most experts would advise keeping the majority of your money invested in them. But they’re not easily liquified, and if you need access to cash fast, it will be difficult to achieve with stocks and bonds. That same concern isn’t present with many gold investments, particularly the physical types like gold bars and coins.

Granted, if you need to sell your physical gold quickly, you may not earn the very top dollar. But having the flexibility to do so, particularly in today’s inflationary environment, is a clear advantage when stacked up against other traditional investment types.

The bottom line

Inflation, higher interest rates and now a potential government shutdown all combine for a poor economic forecast. But you don’t necessarily have to suffer through it. By investing some money into gold now, you can successfully diversify your portfolio and hedge against the worst of inflation. And, if you invest in physical gold, you’ll maintain some liquidity and ease that you simply wouldn’t have enjoyed with many other investment types.

Have more questions? There are multiple gold investing companies that can help.Request a free gold IRA kit here to learn more.

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