Bloomberg Creative
The unemployment rate declines because fewer Americans are looking for work. That was the big economic news released Friday by the Bureau of Labor Statistics. Employers added 254,000 jobs in September, surpassing economists’ forecasts of 140,000 new jobs. The unemployment rate subsequently fell to 4.1%, down from 4.2% the previous month.
This was yet another welcome economic development following a Interest rate cut by the Federal Reserve in September and a report showing inflation at a three-year low. While there is still much work to be done to correct the economy, many Americans can be encouraged by these latest developments.
However, as the economy improves, some may reconsider both their traditional and alternative investments. This consideration is especially important for seniors, many of whom rely heavily on pension funds and Social Security. Especially for this target group, every investment type must be worthwhile. And although goldfor example, has been a smart investment for many in recent years, some older adults may be wondering what it’s worth now. Should seniors invest in gold when the economy improves? Or should they skip it altogether? That’s what we’ll break down below.
See here how the right gold investment can boost your portfolio.
Should seniors invest in gold when the economy improves?
Here are three reasons why seniors should consider investing in gold now, even as the economy bounces back:
The price rises
The price of gold has soared this year, breaking numerous price records in the process. So for those seniors looking for an investment with clear upside, gold will be it. The price of the precious metal started the year on $2,063.73 per ounce and now hovers nearby $2,700.00 – an increase of more than 30% since January. And it could easily be surpassed $3,000 Soon, according to experts. So don’t wait for that to happen. Invest today and enjoy the benefits of a growing asset.
Get started with gold here.
It is still a safe haven
The rising gold price should not cause seniors to forget that the precious metal still serves effectively as a long-term, safe haven investments too. As the past 18 months can demonstrate, while other assets appear shaky due to inflation and other poor economic conditions, gold often continues to appreciate in value at the same time. This safe haven feature is always important to have in your portfolio, especially for seniors who have little wiggle room to tolerate the volatility of other, less reliable investments.
Your portfolio could use the diversification
Certainly, the economy seems to be on the right track at the moment. But that doesn’t mean you have to have a static portfolio. Instead, now is actually a smart time to do so diversify to protect yourself from future economic downturns. And as has been shown in recent years with the pandemic, inflation and more, no one can accurately predict when the economy might change again. It then makes sense to diversify with gold now to compensate for these unforeseen risks. Make sure you do this with a limited amount. Most experts recommend hedging gold 10% of your total portfolio but for seniors that amount may be slightly lower.
The bottom line
Gold may make sense for seniors to invest in now, even as the economy improves on several fronts. With the price of the metal rising, but the traditional benefits of safe haven and diversification still strong, many seniors would benefit from adding a small portion of gold to their portfolios now. And with species ranging from gold IRAs to simple gold bars where you can buy from CostcoThere is currently no shortage of ways to invest in the precious metal.
Get started with this today.
