4 good reasons to invest in gold in May

It’s never a bad time to review your investments. But at the start of a new month – and against a backdrop of sticky weather inflation and high interest rate – this month of May is a crucial time to do so. An investment you may not have thought of is gold. Investing in the precious metals hit its highest point in over a decade last year and the price of metal broke many recordings these last weeks.

That being said, gold does not work the same way as other assets. And the benefits of the metal will be different from those of stocks and bonds. But that doesn’t mean gold can no longer have value. This may be the case, especially this month. Below, we’ll detail four good reasons why you might want to invest in gold this May.

Start by exploring your best gold investment options here today.

4 good reasons to invest in gold in May

Here are four reasons why it may be wise to invest in gold this month.

It can help protect against inflation

Those who hoped that the downward trajectory of inflation seen at the end of 2023 would continue unabated in 2024 have so far been disappointed. Inflation accelerated in February and again in March (the April report will be released later this month). Inflation therefore remains a concern for many.

But gold can help guard against this maintaining, or even increasing, the value when inflation is high. And since the prospect of a further slowdown in the inflation rate is unknown, it makes sense to add some precautionary measures to your investment portfolio now. Gold can help achieve this.

Learn more about how gold can help fight inflation here.

It can diversify your portfolio

A diversified portfolio is often a success. And gold can help ensure this diversity. Although stocks and bonds can be more volatile and should make up the majority of your portfolio, gold can also be useful. If these latter assets can produce income, gold can help protect them. That said, investing in gold should generally be limited to 10% or less of your portfolio maintain the growth potential of other assets.

The price increases

The price of gold has surged this year, from $2,063.73 per ounce on January 1 to $2,306.10 per ounce today — an increase of 13%. But with interest rates suspended again following the Fed’s announcement this week and inflation still problematic, more investors could turn to the yellow metal, causing prices to rise. So it makes sense to invest before the price becomes out of reach. This month of May is the perfect time to do it.

You may be able to make a quick profit

Gold is not often considered an income-generating investment, but with the rapid rise in prices so far in 2024, you may be able to make a quick profit. This will require watching the price closely for selling opportunities, but if you’re looking for an investment that you can buy low and sell high, gold might be the one to go for this month.

Find out now how much you could potentially earn with an online gold investment.

The essential

Timing any type of investment is important, and current timing favors gold. By investing in gold, you can protect yourself against stubborn inflation and diversify your portfolio in the meantime. And with prices rising, it pays to act quickly. If you do, you may even be able to turn a quick profit – a rarity for an investment better known as refuge. However, as with all investments and financial considerations, be sure to carefully weigh the advantages and disadvantages of gold against other assets to improve your chances of a successful investment.