A number of economic issues are still looming as we inch closer to 2024. For starters, persistent inflation continues to wreak havoc on the price of consumer goods and erode purchasing power, despite numerous Fed rate hikes over the last year. And, interest rates are still elevated — and are likely to climb even higher — so the borrowing landscape is a lot less friendly than it was in recent years.
In response to these and other economic uncertainties, many investors are seeking ways to safeguard their wealth and secure their financial future. And, while there are any number of investment opportunities to choose from, one asset that continues to shine is gold.
Gold offers a wide range of unique benefits to investors, and there are a few compelling reasons why you should consider adding gold to your investment portfolio before the new year rolls around.Start by exploring the benefits of gold investing with a free info kit here.
4 reasons to invest in gold before 2024
If you’ve been holding off on making an investment in gold, here are a few reasons you may want to make your move before 2024:
To reap the potential tax benefits
Investing in gold can offer unique tax advantages in some cases — and you may want to take advantage of them before the new year rolls around. For example, when you hold physical gold or certain gold-related investments within an individual retirement account (IRA), your gains can grow tax-deferred. And, if you meet certain criteria and choose to take distributions in retirement, you may reap other tax-related benefits.
These types of tax perks can make gold IRAs an attractive option for investors looking to build a tax-efficient retirement nest egg while capitalizing on the potential growth of gold.
To protect your portfolio from geopolitical uncertainty
Global geopolitical tensions are on the rise and that can lead to uncertainty in financial markets. Trade disputes, political conflicts and other geopolitical factors can all trigger market volatility and impact traditional investments like stocks and bonds.
But gold, being a physical asset with intrinsic value, tends to perform well during times of uncertainty. That’s why investors often flock to gold as a safe haven, making it a valuable asset to hold in your portfolio in the face of geopolitical turbulence.
To hedge against inflation
Inflation has been a growing concern for investors — and for good reason. Not only is inflation still a persistent issue nationwide, but the rate of inflation ticked back up in July unexpectedly after cooling in the months prior.
And, when inflation is high, it erodes the purchasing power of traditional currencies — meaning that investor’s dollars don’t stretch as far. But gold has a long history of serving as a hedge against inflation. Its value tends to rise during periods of currency devaluation, making it an attractive option for preserving your wealth and purchasing power — and a smart addition to your portfolio prior to 2024.
To diversify your investments
Diversification is a fundamental principle of sound investing, and gold can be a great tool for this purpose. By adding gold to your portfolio, you can spread out your risk and reduce your overall exposure to one particular asset class.
That’s because gold’s price movements often differ from those of stocks and bonds, making it an effective diversification tool. When other investments falter, gold can provide stability and act as a counterbalance, helping to protect your portfolio during market downturns. And considering that we’re in the midst of an uncertain economic period, it can be a wise move to add this precious metal to your portfolio before the start of 2024.
The bottom line
There are plenty of compelling reasons to consider a gold investment before 2024. Whether you’re concerned about rising inflation, geopolitical uncertainty or the need for portfolio diversification, gold offers a proven solution. And, its track record as a hedge against inflation, a store of value and the potential for capital appreciation make it an attractive asset for investors. The tax benefits of gold IRAs can also enhance your overall returns and provide a tax-efficient retirement strategy.
So, before the new year arrives, consider adding gold to your investment strategy and fortify your financial well-being in these uncertain times. Just remember to take the time to do your research and determine the best approach for your individual circumstances and objectives before making any moves.