Gold investing tips beginners should know, according to experts
In the current economic climate, where inflation and interest rates are elevated, many investors are taking a closer look at their portfolios.
While you don't necessarily want to react out of fear or try to time the market, you might revisit your portfolio to see if your investment strategy fits your current needs. Perhaps you've been under-diversifying, or your risk tolerance has changed. In these types of situations, you might turn more toward assets like gold.
"Probably the primary reason someone would consider investing in gold is for additional diversification. Gold has a low correlation with other asset classes like stocks and bonds, meaning it doesn't move in sync with these other traditional investments," says Tyson Romanick, Chartered Financial Analyst, VP portfolio manager at Baker Boyer.
Another reason to invest in gold is to have an asset that can potentially hold up amidst broader turmoil, with many investors using gold as a store of value. That being said, there's no guarantee gold will perform well during difficult economic environments, and investors need to understand the risks along with the potential rewards of investing in gold.
