Gold, silver, and other precious metals have been great investments for centuries. In recent decades, the price of gold has skyrocketed over time. This type of investment helps protect and hedge against inflation. Unfortunately, most people aren’t aware of all the ways that you can invest in gold.
Investing in gold is even easier these days, especially when you work with one of the top gold investment companies on the market. You can buy the precious metal directly, and you can even have it stored for you. There are ways to hold gold in your IRA, and you can even initiate a gold IRA, focusing primarily on that type of investment. Did you know that you can even receive dividends off of the price of gold?
That last question stumps most everyone. You see, most people do not know about exchange-traded notes or ETNs. If you mention ETN’s, most retail investors are going to think you are talking about ETF’s or exchange-traded funds. Credit Suisse offers exchange-traded notes that provide dividends based on the premiums paid on covered calls written on the price of GOLD or a spot price gold ETF.
The yield on this particular exchange-traded note is rather attractive, too. Furthermore, GLDI was the only ticker I personally tracked during the March pandemic downturn that not only held its own but increased in value. Gold tends to do well during economic downturns, and it is important to remember that when allocating your investments.
You want some investment vehicles that are going to hold up well when a bear market arrives. You also want cash set aside so that you are able to buy shares at a discount during a downturn. That is how you maximize returns and get ahead as an investor.
Holding gold, silver, bonds, T-bills, etc. can help to balance your investment portfolio so that your finances are more protected. You can better focus on additional growth vs managing risk. You do want to take risks, however, but they need to be carefully calculated.
What percentage of your portfolio should be allocated to gold? Naturally, that is going to depend on your age, personal goals, investment risk assessment, etc. The takeaway here is if gold is not part of your portfolio, it is time to get started. Allocate at least five percent of your portfolio to gold and other precious metals, and you can rebalance from there.
There are even apps available now that allow you to connect your bank account and purchase precious metals at fractions of an ounce. Retail investors now have even better access to purchasing gold for their portfolios. You can pay a storage fee and keep your gold and other precious metals in the vault, or you can have them sent to your address.
Buying gold in this type of economic climate is always a good move. In fact, gold is always a good move in general, and there is no better time to get started than now. Do look into which companies offer gold and determine how you would like to invest. Having some gold in an IRA is always a wonderful place to start.