Inflation is hurting investors. Here's how gold can help.
Following hopes earlier this year that inflation was cooling, it ticked up twice over the summer and stayed steady into the fall. According to a new inflation report released Thursday, prices increased 0.4% from August to September while annual consumer inflation remained the same at August's 3.7% rate.
While inflation negatively affects the cost of borrowing for mortgages to personal loans to credit cards, there are some ways investors can protect themselves. One popular way investors have turned to this year? Gold. The precious metal can be beneficial for investors in all economies but can be particularly advantageous now.
If you think you could benefit from the security gold offers then start by requesting a free information kit to learn more.
How gold can help investors battle inflation now
Here are three ways gold can help investors now.
As a hedge against inflation
Gold investing is known for many benefits, but arguably none as well as the hedge it can provide against inflation. And with Thursday's report demonstrating that inflation is still far from the Fed's 2% target, now is a great time to get invested. With a gold investment in the right amount, investors can help offset losses felt by other assets like stocks, bonds and even real estate. Gold often keeps its value and may even tick up in price during inflationary climates. That can be valuable for many investors now.
Get started with a free gold IRA kit here to learn more.
As a portfolio diversifier
Gold can help diversify your portfolio, which is helpful when other assets falter. You generally won't make income off of a gold investment (at least not in the short term), but you may not have to if the goal is to help keep your other investments afloat. A gold investment, then, in the right amount (capped at 10% of your portfolio) can generally do just that.
As a tangible asset
Stocks, bonds and real estate all offer investors reliable ways to grow their money. What they don't do is offer easy ways to become liquified, particularly real estate. But gold doesn't have those same limitations. An investment in gold bars and coins, for example, can be sold immediately. And it can be easily purchased through top gold companies or even online at Costco. Those flexible terms of purchase and sale are always beneficial, but particularly when investors want more freedom to make quick decisions as they may now.
The bottom line
News showing inflation rising — or even staying steady — isn't welcome for most Americans. In these circumstances, investors are better served by shoring up their protections as best as possible. Gold investing is one effective way to do so. By investing in gold during inflationary climates, investors can better protect their more volatile assets and offer some diversification to what otherwise may have been a static portfolio. And, if they want to part with their gold investment quickly, they can generally sell gold bars and coins easily.
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