Four Smart Steps to Take as Gold Price Drops In
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Posted On: 07/31/2024 6:02:33 PM
Four Smart Steps to Take as Gold Price Drops
Investors have been flocking to gold in the past few months, many focused on capitalizing on the metal’s uptick in price. Earlier this year, the metal’s price started going higher before reaching its first record of the year in March. By mid-July, gold had surpassed many highs to reach $2,472 an ounce, its newest record.
Since then, the price of the precious metal has dropped to $2,371.45 an ounce, representing a drop of nearly 4%.
With the Fed set to make a new announcement and the rate of inflation cooling, the price of gold is expected to go down, at least over the short-term. While this isn’t necessarily a bad thing, investors who are skeptical can consider the following moves in this current climate.
Purchase physical gold
The falling price of gold reduces the amount of money needed to own physical gold. This makes acquiring physical gold at this time a good move, particularly for investors who believe in the metal’s long-term value as a hedge against economic uncertainty and inflation. This also affords investors direct control and ownership over their investment.
Diversify one’s portfolio in the precious metal sector
Investors’ diversifying into palladium, platinum or silver is another smart move, given that these metals have different industrial applications and price drivers. This offers a hedge against market fluctuations specific to the gold market.
By investing in more than one precious metal, investors potentially decrease risk while still being exposed to the sector.
Consider gold ETFs and mining stocks
Investors who prefer exposure to gold without physically owning the metal may benefit from investing in gold-focused exchange traded funds (ETFs) and mining stocks. This is mainly because gold mining company stocks experience sharper declines than gold, which may offer investors greater upside when the market recovers.
Gold ETFs also offer investors a more diversified approach to investing in the precious metal, offering exposure to gold prices combined with the liquidity of stocks. This move also allows investors to benefit from movements in the price of gold without the need for insurance or storage.
Open a gold Individual Retirement Account (IRA)
A gold IRA allows investors to physically hold precious metals such as gold as part of one’s retirement portfolio, combining tax advantages with the benefits of owning gold. This is particularly beneficial in the long-term as investors enjoy tax-free or tax-deferred growth.
This strategy may benefit investors seeking to diversify savings from their retirement while protecting their portfolios from economic instability or currency devaluation.
For those looking to invest in gold stocks, there are almost unlimited alternatives from which to choose, with twists to each possible investment. For example, companies such as GEMXX Corp. (OTC: GEMZ) not only extract gold but also make finished products, including jewelry, from this precious metal.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Investors have been flocking to gold in the past few months, many focused on capitalizing on the metal’s uptick in price. Earlier this year, the metal’s price started going higher before reaching its first record of the year in March. By mid-July, gold had surpassed many highs to reach $2,472 an ounce, its newest record.
Since then, the price of the precious metal has dropped to $2,371.45 an ounce, representing a drop of nearly 4%.
With the Fed set to make a new announcement and the rate of inflation cooling, the price of gold is expected to go down, at least over the short-term. While this isn’t necessarily a bad thing, investors who are skeptical can consider the following moves in this current climate.
Purchase physical gold
The falling price of gold reduces the amount of money needed to own physical gold. This makes acquiring physical gold at this time a good move, particularly for investors who believe in the metal’s long-term value as a hedge against economic uncertainty and inflation. This also affords investors direct control and ownership over their investment.
Diversify one’s portfolio in the precious metal sector
Investors’ diversifying into palladium, platinum or silver is another smart move, given that these metals have different industrial applications and price drivers. This offers a hedge against market fluctuations specific to the gold market.
By investing in more than one precious metal, investors potentially decrease risk while still being exposed to the sector.
Consider gold ETFs and mining stocks
Investors who prefer exposure to gold without physically owning the metal may benefit from investing in gold-focused exchange traded funds (ETFs) and mining stocks. This is mainly because gold mining company stocks experience sharper declines than gold, which may offer investors greater upside when the market recovers.
Gold ETFs also offer investors a more diversified approach to investing in the precious metal, offering exposure to gold prices combined with the liquidity of stocks. This move also allows investors to benefit from movements in the price of gold without the need for insurance or storage.
Open a gold Individual Retirement Account (IRA)
A gold IRA allows investors to physically hold precious metals such as gold as part of one’s retirement portfolio, combining tax advantages with the benefits of owning gold. This is particularly beneficial in the long-term as investors enjoy tax-free or tax-deferred growth.
This strategy may benefit investors seeking to diversify savings from their retirement while protecting their portfolios from economic instability or currency devaluation.
For those looking to invest in gold stocks, there are almost unlimited alternatives from which to choose, with twists to each possible investment. For example, companies such as GEMXX Corp. (OTC: GEMZ) not only extract gold but also make finished products, including jewelry, from this precious metal.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
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