There is no mistaking the current state of the nation, from inflation and layoffs to the declining dollar and an overall decrease in the stock market. Now more than ever, gold is taking center stage as an essential hedge against inflation and a distressed economy. Perhaps the only bit of good news for today’s assets is that the precious metals industry is finally on the upswing, since 2022. While the US dollar continues to fall and interest rates rise, there is a renewed interest in precious metals.
Gold On The Rise
According to a recent Forbes article entitled, Gold Stocks Are Rising In 2023 – Should You Add Precious Metals To Your Portfolio, there is a bullish outlook for gold that could evolve into a multi-year upturn. In the article, it was noted that, “Despite uncertainty and potential headwinds, gold has plenty going for it in 2023. The Fed is still raising rates, but slowing its pace.”
Some Gold Nuggets For Thought
More than any other recent year, precious metals are making a new debut. There are a number of “gold nuggets” circling about that give rise to a potential gold investment as we move into 2023:
- Since November 2022, gold prices have been on an incline, nearly 17% over the past three months (some are calling a rally) amidst market turbulence, a rising recession, a weaker dollar, and increasing interest rates, to name a few. It could be time to purchase gold or consider silver before the prices begin to rise significantly.
- Not only are gold miners considering a diversification into copper and base metals there are also signs that gold will be essential for financial diversification.
- As environmental, social governance (ESG) do-gooders instigate worldwide policies in terms of energy efficiency practices, the mining industry is high on the radar as one that must conform, giving mining a lot of attention—not necessarily bad. The thought that precious metals may not be as accessible is certain to drive interest.
The central banks are continually adding record-breaking amounts of gold to their reserves and especially recently given analysts’ positive projections for gold in 2023. This activity drives investors to make a move.- Gold’s success as a hedge against inflation is now essential for giving investors some peace of mind during expected times of crises. Large- and small-firm layoffs are rampant, US debt is incredibly high, and the economy is on a decline—no matter what you hear from the media.
While a gold investment need not make up an entire financial portfolio, the best time to diversify is during such a crisis. Advisors generally recommend a 10%-15% mix of precious metals in general and perhaps a little higher for a time when geopolitical unrest is increasing, and we face a period of unknowns.
Diversity Your Assets
As the Forbes article suggests, “While there will be bumps one way or the other, the overall outlook for gold in 2023 is shiny.” The author states, “A good portfolio has a mix of both risky and conservative investments. Holding a conservative investment like gold over the long-term can be a good way to offset riskier investments in your portfolio, like stocks. Both are necessary, and your asset allocation will depend on your financial goals, risk tolerance and duration of investment.”
Contact an advisor at Reagan Gold Group (RGG) and have a conversation about your investment portfolio. It is possibly the best time in your lifetime—the US is in a place like never been before—to modify your investment mix and put gold or silver into your tangible set of assets. Don’t wait another day to make the call. Gold is essential for 2023.
