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The price of gold it's going up… and up… and up. This is what many investors have been monitoring in recent months as the price of the precious metal has increased by more than 15% since January 1. At the time, gold was worth $2,063.73 an ounce, but as of May 17, it was selling at $2,381.92 an ounce. That's a significant increase for any asset, especially one better known as a safe haven versus an income generator.
However, Gold is considered a hedge against inflation for its ability to maintain itself and increase in value during inflationary periods such as we are still experiencing. So it's understandable if beginners I want to start now, even with the continuously rising price. That said, there are some strategic moves gold investors should make right now to avoid being blindsided by the shiny new price. Below, we'll break down three of these mistakes to avoid to better improve your chances of gold investing success right now.
Learn more about how gold can help with inflation here now.
3 moves to avoid as the price of gold rises
Here are three things potential gold investors should avoid as the price of the precious metal continues to rise:
Don't overinvest
Looking at the gold price chart in 2024, it can be tempting to invest more than you should right now. But that would not be a beneficial move. Whether the price is rising or stagnating, gold should be limited to 10% or less of your overall portfolio. This will allow other more volatile investments to perform better and give you a chance to earn some income in the process. Gold, no matter how much it goes up in price, is generally a better way to do it diversify your portfolio and protect other assets. So don't let a rising price change sound investment advice.
Invest with the right amount of gold online today.
You are not looking to make a quick profit
Of course, if you bought gold in January and sold it this month you would have made a relatively quick profit (for gold, that is). But don't look to do it regularly right now. Again, gold is generally more effective as an inflation hedge and portfolio diversifier than as a get-rich-quick route. So don't let the price deter you. While in theory you can make quick profits right now, it's not the approach to take to ensure long-term success. In addition, the Stock market it's hot right now; you might want to invest more there.
Don't wait for the price to drop
A rising price, for some investors, may mean now no the right time to invest in gold. But waiting for the price to drop can be a mistake. To begin with, there is no strong indicator that the price will drop significantly. inflation is stubborn (albeit cold) and interest rate they remain stuck at a 23-year high, both factors that cause investors to turn to gold and therefore cause the price to rise (not fall). And while there have been drops in price in the recent past, gold generally tends to move in one direction: up. So if you wait for the price to drop to begin with, you may be waiting a long time (and missing out on the protections it can provide).
The bottom line
As the price of gold continues to rise, investors can start now. However, to improve their chances of success, they should avoid overinvesting in the precious metal and must fight the urge to make a quick profit amid price volatility. Finally, they should be smart about the historical price evolution of the yellow metal and understand that waiting for an opportune moment for the price to drop may never come to light.
Have more questions about investing in gold now? Find out more here today.
