Should I Be Investing in Gold or Silver Right Now?
Investing in gold and silver has been a popular strategy for centuries and remains a viable option today. While it is often considered a safe-haven asset, is gold or silver the right investment for your portfolio? This is a question we receive with some regularity, especially when prices are going up.
The not-so-favorable answer is it depends. Like all investments, gold does come with its own set of risks. Every situation is unique, so you want to do your research and reach out to your advisor. You can also reach out to us here at North Main Financial Group to see if this is the right move for you.
Here are three things to keep in mind when considering gold and silver as an investment.
Do you want to possess the actual gold or silver?
The first factor to consider when investing in gold or silver is whether you want to hold the asset itself or invest in publicly traded instruments such as exchange-traded funds or mining companies. Each option has its own pros and cons that should be weighed carefully.
Caution: late-night infomercials ahead!
Investors should be cautious of late-night infomercials and mailers promoting gold or silver investments. These ads tend to appear when prices are rapidly appreciating, which may indicate a red flag. It’s important to approach these promotions with skepticism and consult with a financial advisor before making any decisions.
Understand the relationship between gold/silver and your portfolio.
Investors must also understand the relationship between gold/silver and their overall portfolio. This includes analyzing the performance of the asset during both up and down markets, as well as determining whether it is correlated or negatively correlated with other investments in the portfolio. Taking these factors into account can help investors make informed decisions about incorporating gold or silver into their investment strategy.
If you have questions about whether gold or silver fits into your financial plan, North Main Financial is always here to help. Give us a call at (704) 987-1425 or visit us at www.northmainfinancial.com to schedule an introductory meeting. We would be happy to meet with you at no cost or obligation to you.
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These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.