![3 moves to avoid in the face of rising gold prices 3 moves to avoid in the face of rising gold prices](https://i0.wp.com/assets1.cbsnewsstatic.com/hub/i/r/2024/05/17/4d9f4290-3aa4-4031-9208-ce2672d5731a/thumbnail/1200x630/0c8e6aa33c9c1ee1147f348097221462/gettyimages-1357315979.jpg?v=dac66bdad19d0be8e87f46552b582682&w=1200&resize=1200,630&ssl=1)
Getty Images
The price of gold is rising…and rising…and rising. That’s what many investors have been watching in recent months as the price of the precious metal has surged more than 15%. since January 1. At that time, gold was worth $2,063.73 per ounce, but as of May 17, it was selling for $2,381.92 for the same ounce. This is a significant increase for any asset, especially one better known as refuge in relation to an income generator.
Always, gold is considered a hedge against inflation due to its ability to maintain and increase its value during inflationary periods like we are still experiencing. It is therefore understandable if beginners I want to start now, even if the price keeps going up. That said, gold investors should take some strategic steps now to avoid being blindsided by the shiny new price. Below, we’ll detail three of these mistakes to avoid in order to improve your chances of success investing in gold now.
Learn more about how gold can help fight inflation here now.
3 moves to avoid in the face of rising gold prices
Here are three things potential gold investors should avoid doing as the price of the precious metal continues to rise:
Don’t overinvest
Looking at the 2024 gold price chart, it may be tempting to invest more than you currently should. But this would not be a beneficial decision. Whether the price rises or stagnates, 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 income in the process. Gold, no matter how high its price rises, is generally a better way to diversify your portfolio and protect other assets. So don’t let rising prices change reliable investment advice.
Invest today with the right amount of gold online.
Don’t try to make a quick profit
Of course, if you bought gold in January and sold it this month, you will have made a relatively quick profit (for gold, of course). But don’t try to do it regularly just yet. Again, gold is generally more effective as an inflation hedge and a means of portfolio diversification than as a get-rich-quick way. So don’t let the price deter you. While you can theoretically make a quick profit right now, this is not the approach to take to ensure long-term success. Additionally, the sotck exchange is hot right now – you may want to invest more in it.
Don’t wait for the price to drop
A rise in prices, for some investors, may mean that it is now not the right time to invest in gold. But waiting for the price to drop may be a mistake. To begin with, there is no clear indication that the price will drop significantly. Inflation is stubborn (although cooled) and interest rate remain stuck at a 23-year high – two factors that are driving investors into gold and, therefore, driving the price up (not down). And even though prices have fallen recently, gold, overall, tends to move in one direction: up. So if you wait until the price drops to start, you may find yourself waiting a long time (and you’ll miss out on the protections it can offer in the meantime).
The essential
As the price of gold continues to rise, it’s up to investors to get in on it now. However, to improve their chances of success, they should avoid overinvesting in the precious metal and fight the urge to make a quick profit amid price volatility. Finally, they need to be smart about the historical price development of the yellow metal and understand that waiting for an opportune moment for the price to drop may never surface.
Now you have more questions about investing in gold? Learn more here today.
Grub5