Should I Buy Gold Now or Wait? Investing in Gold
The pandemic has taken the entire world to a different level. Everyone has tried their best to survive both physically, mentally, and financially. Due to the pandemic, gold has surged too, which may keep going. Should I buy gold now or wait?
Gold prices hit the highest milestone since 2011. As the pandemic goes uncertain, gold may also hit another higher record for a couple of years ahead. Does it mean that this year is a good year to buy gold? What should you know about investing in gold during an uncertain moment?
1. Gold and its rally
This year, gold hit 19% up. Until today, this commodity is considered a “safe haven” asset, especially during uncertain conditions. Compared to other investments, gold is less volatile. This pandemic is like real-time evidence that gold is a hence against inflation and financial crisis. Today, gold has entered a new trading territory.
2. Prices up and up
The pandemic hits the entire world in late March. Many investors try to free up cash and sell their gold. After that, many buyers are interested in gold – this is a safe spot to freeze their money. The price may arise in the next months. If all you need is to diversify your investment, feel free to go with physical gold after all.
3. Is it the right time?
So, should I buy gold now or wait? It depends. Some experts will encourage you to buy gold as a small part of your investment. On the other hand, some other investors stop you from buying physical gold during the pandemic.
Generally saying, there is no right time to buy gold. Also, all investors should have some though. Allocating about 3% of your investment to gold would be a good idea. A small portion could bring a massive change in a good way.
4. How to invest in gold?
Buying a physical gold bar might be the first thing that comes to mind. Coins and bars are the most traditional way to invest in gold. On the other hand, this type of gold is liquid and hassle-free to find the market in case you need to cash your asset fast. Be sure to buy from a reputable dealer or bank. In case you plan to use the bank’s depository, you need to prepare extra costs for storage and insurance.
Another way to invest in gold is by buying gold-related stocks. This way is less traditional, but you should be aware of the swings in the stock market. Just like any other stock, pullbacks are risks you will face by playing with stocks and bonds.
Other than that, you can invest in ETFs. This way allows you to have the benefits of owning physical gold without purchasing one. It seems like you are playing with the price and this option is quite famous among investors.
Should I buy gold now or wait 2021?
Investing in gold is a smart way to make a difference in your portfolio. Also, gold helps you to survive during the pandemic while it can be cashed easily. And this is anything you need to know about “Should I buy gold now or wait?”