3 Reasons to Invest in Gold This Week

Gold Investments has been a popular choice for many in recent years, reaching its the highest point in more than a decade last September. Thanks to the ability to inflation protection (holding its value while other assets falter) and diversify portfolios (providing protection that other assets cannot), many have turned to gold in its various forms.

Even knowing which resource investing is essential, it is equally important to know when to start and when to look elsewhere. And with the gold price With numerous price records so far in 2024, investors may have already missed some rare opportunities to make a quick profit with an investment often known as refuge.

But that window of opportunity has not yet completely closed. There are multiple reasons why beginners should consider investing in the metal as early as this week. Below, we’ll look at three of the most important ones to know now.

Find out now which gold investment is best for you.

3 Reasons to Invest in Gold This Week

Not sure if it's the right time to invest in gold? Here are three reasons why you should consider doing so this week.

The price has dropped

Gold has broken numerous price records this year, the last of which occurred on July 17, when the metal hit $2,472.46 an ounce. But it has fallen 3% since then, currently sitting at $2,389.26 for the same amount of gold.

And even if this drop is minimal, it is better than waiting for the price to rise even further. With many experts predicting a price of $3,000 an ounce soon, so now is the time to buy while it’s still cheap. If you wait, you could lose the portfolio protection that a gold investment can provide. And the price could rise in a matter of days.

Find out here how much your gold investment could cost you.

The price could change after the Federal Reserve meeting

The next Federal Reserve meeting is scheduled for July 30-31 (Wednesday and Thursday of this week). While a cut in the federal funds rate does not appear likely, the Fed is likely to provide more information about its decision-making process and the possibility of a rate cut in September, when it next meets.

While the Fed doesn’t directly determine the price of gold, it could influence it, particularly if prolonged higher interest rates lead to further economic concerns. In this scenario, more investors could turn to gold for protection, causing the price to rise. But if the meeting ends on a positive note, the price of gold could adjust lower in response. So investors should consider investing before this happens if they think the price will rise, or wait until later in the week if they think the price will fall further.

Your portfolio is not diversified enough

A changing inflation rate and what many expect to soon be a climate of lower interest rates could soon combine to affect your portfolio, perhaps significantly. In times like these, diversification is especially important to get right. A diversified portfolio can help you take advantage of some volatility, such as that offered by stocks and bonds, while still offering some protection against broader economic concerns.

Gold can adequately perform this latter function, especially if it is in the form of 10% or less of your overall portfolioAnd with changes expected as early as this week (remember, the Fed doesn’t need to formally adjust rates for lenders to do so), now is a great time to add the protection and diversification that a gold investment can provide.

The bottom line

While investors might have started gold at a lower price had they acted last year, there may still be an opening to start the metal this week. Thanks to a falling price, the potential for that price to decline further following the Federal Reserve meeting, and the growing need for a diversified portfolio in the face of a changing economic climate, this week marks a smart time to consider the alternative asset. Just be sure to weigh the pros and cons before you begin, to ensure that this unique investment is right for your specific portfolio and financial circumstances.