Bloomberg Creative
Investing is tricky, even when the economy is running at full speed. But with inflation always a concern and interest rate With a 23-year high, it’s even harder to choose where to put your money. Smart investors spread their funds across different types of assets. This approach, called diversification, helps protect your wealth when markets become volatile.
Gold is a safe haven that many turn to when they want to add something different to their portfolio. There are plenty of options, but some gold investments could be more profitable than others this fall. We asked experts which ones might be.
Find out what gold investment could benefit you here and now.
3 Gold Investments That Experts Say Could Pay Off This Fall
Many experts suggest allocating 2 to 10% of your portfolio in gold for balanced diversification. With that in mind, let’s look at three gold investments that could prove profitable in the months ahead.
Gold Royalty Companies
Gold royalty companies offer a way to invest in gold without having to own physical metal. These companies use contracts to finance mining operations in exchange for a share of future gold production.
Shawn Plummer, CEO of The Annuity Expert, an online insurance agency based in Atlanta, Georgia, thinks these companies could be a smart bet this fall. “Unlike traditional mining stocks, they’re not directly impacted by mining costs or operational issues,” he said. That resilience allows them to weather market storms better than other gold investments.
Plummer said he recommends them to clients looking for stable, lower-risk sources of income. These companies can benefit from high gold prices while offering more stability than traditional mining stocks.
Learn more about your best online gold investment options today.
Digital Gold Tokens
Digital gold tokens are a new way to invest in gold using blockchain technology. Companies are offering these tokens, allowing investors to own real gold without storing it themselves. Plummer sees growing interest in this asset class. “I’ve seen tech-savvy investors use these tokens as a modern inflation hedge in their portfolios,” he said.
As people look to protect their money from unpredictable price swings this fall, digital gold tokens could gain popularity. They combine the traditional value of gold with digital flexibility. Plus, their high price tag liquidity is attractive: you can quickly buy, sell or exchange your gold holdings as markets move.
Physical gold
Physical gold could be another solid investment in the months ahead, but not all forms are created equal.
Plummer sees numismatic coins as a promising option. These rare coins have value beyond their gold content, often tied to their historical significance or rarity. He notes that these coins can command much higher prices to collectors in times of economic uncertainty, sometimes surpassing standard gold coins in value.
Jeffrey Zhou, founder of Fig Loans, a financial institution in Sugar Land, Texas, warns, however, of the risks of counterfeiting in the physical gold market. He advises careful verification of any gold purchase. “I had a client who bought what appeared to be a high-quality gold bar from a reputable dealer … it turned out to be a sophisticated fake.” [and] “a significant financial loss,” he warned.
For a balance of safety and growth potential, Henry Yoshida, a certified financial planner and CEO of Texas-based financial services firm Rocket Dollar, recommends gold coins from reputable sources like the U.S. Mint. “It’s not for everyone, but I would prefer it to be in a gold IRA to align with the long-term holding perspective and long-term tax savings,” he advised.
Yoshida sees physical gold as offering “the purest protection” compared to other gold-related investments, especially if you are looking beyond short-term gains this fall.
The essentials
Focus on your long-term goals. Physical gold can be suitable for medium to long-term investments, while gold royalty companies can offer a mix of stability and growth potential.
As with any investment, consider investing in gold with a well-thought-out plan. Yoshida advises against timing the market. Instead, he recommends “dollar-cost averaging on a set schedule, regardless of market conditions.” This means investing a fixed amount regularly, which can smooth out price fluctuations over time.
When in doubt, Yoshida suggests starting with a 2% to 5% position in your portfolio. “Gold is sensitive to macroeconomic factors such as inflation, the federal funds rate, and market fluctuations. [sentiment]”, he noted. Keep these things in mind when making your regular investments. Most importantly, don’t bet everything on gold – consider investing in other precious metals to keep your portfolio well balanced.
