As we enter 2023, many investors are looking for ways to protect their portfolios against market volatility and inflation. One popular option for investors looking to diversify their holdings is investing in gold.
Investors in 2023 can invest in gold through various avenues such as physical gold, gold exchange-traded funds (ETFs), and gold mining stocks.
For physical gold, options include buying bullion bars, coins, or jewelry, but these may come with storage and insurance costs.
ETFs provide a more convenient way to invest in gold without the need for physical storage, while gold mining stocks can offer exposure to the potential profits and risks of gold mining companies.
As with any investment, it is important to conduct thorough research and seek professional advice before investing in gold.
In this post, we will explore the benefits of investing in gold in 2023, best practices for investing in physical gold, and recommendations for companies that sell physical gold.
Join me on M1 Finance, my go-to platform for buying stocks and ETFs – especially gold ETFs – and take control of your investment portfolio today!
Benefits of Investing in Gold in 2023
Hedge Against Inflation: Gold has historically been seen as a hedge against inflation, as its value tends to rise along with the general price level of goods and services.
Inflation is expected to be a major concern in 2023 due to the ongoing pandemic, supply chain disruptions, and other economic factors, making gold an attractive investment option for investors looking to protect their portfolios.
Diversification: Gold has historically had a low correlation to other asset classes, meaning that it can provide diversification benefits to a portfolio.
In times of economic uncertainty or market volatility, gold has often performed well, providing a hedge against potential losses in other investments.
Safe Haven Asset: Gold is often seen as a safe haven asset, meaning that investors tend to flock to it during times of economic or geopolitical uncertainty.
In the current economic climate, with concerns over the ongoing pandemic, geopolitical tensions, and other factors, gold is likely to continue to be seen as a safe haven asset.
Tangible Asset: Physical gold is a tangible asset that can be stored and transported as desired. This can provide a sense of security and peace of mind for investors who prefer to have direct ownership of their assets.
Investing in physical gold is a smart way to diversify your portfolio and protect your wealth. Our latest article covers everything you need to know to get started, including tips for buying, selling, and storing your gold.
Drawbacks of Investing in Gold in 2023
Storage Costs: Physical gold must be stored securely, which can result in additional costs for investors. This may include the cost of a safe deposit box, a home safe, or other secure storage options.
Liquidity: Selling physical gold can be more difficult and time-consuming than selling other assets, as it may require finding a buyer and physically delivering the gold.
Counterfeiting: Physical gold is vulnerable to counterfeiting, and investors must take steps to ensure that they are purchasing genuine gold products from reputable dealers.
Best Practices for Investing in Physical Gold
If you are interested in investing in physical gold, there are several best practices to keep in mind:
Buy from a reputable dealer: When purchasing physical gold, it is important to buy from a reputable dealer who can provide proof of authenticity and ensure that the gold meets industry standards.
Store the gold securely: Physical gold should be stored in a secure location, such as a safe deposit box or a home safe, to protect against theft and damage.
Be aware of taxes: In some cases, investments in physical gold may be subject to taxes, such as sales tax or capital gains tax. It is important to be aware of these taxes and factor them into your investment decisions.
3 Recommended Companies for Investing in Physical Gold
There are several reputable companies that specialize in selling physical gold to investors. Some of the top recommended companies include:
- American Bullion: American Bullion is a leading provider of physical gold and other precious metals. The company offers a range of products, including gold coins and bars, and provides secure storage options for investors.
- JM Bullion: JM Bullion is another top-rated company that specializes in selling physical gold and other precious metals. The company offers a wide selection of gold products, including coins, bars, and rounds.
- APMEX: APMEX is a well-known precious metals dealer that offers a wide range of gold products, including coins and bars. The company also provides secure storage options for investors.
Investing in gold is a smart way to safeguard your wealth and prepare for economic uncertainty. Our latest article covers the top 8 ways to invest in gold, so you can start building your financial future today.
Conclusion
investing in gold in 2023 offers a range of benefits for investors looking to diversify their portfolio and protect against economic uncertainty.
Investing in gold can be an attractive option for investors looking to diversify their portfolios and protect against market volatility.
Gold has traditionally served as a safe haven during times of inflation, currency fluctuations, and geopolitical tensions.
With various investment options available, such as physical gold, gold ETFs, and gold mining stocks, investors can choose the approach that best suits their investment goals and risk tolerance.
However, as with any investment, it is important to conduct thorough research, assess risks, and seek professional advice before making any investment decisions.
By doing so, investors can position themselves for long-term success and take advantage of the potential benefits of investing in gold in 2023.