• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar

Invest Better

Investment Strategies for Building Wealth

  • Alternative
  • Hard Assets
  • Securities
  • Traditional
  • Scam Alerts

Four Reasons to Consider Adding Gold Stocks to your Portfolio Now

May 10, 2018 Leave a Comment

Ask ten different people for their opinion about whether or not to include gold in their investment portfolio, and you’re likely to get about eleven different answers. “Gold is down,” they’ll claim, “and it’s only going to get lower.”

Or is it? Below are four solid reasons why you should strongly consider adding gold to your portfolio.

1. Increasing Inflation

Typically, investors see inflation as a bad sign for the economy. All of the value of their stocks go right down the drain as wealth, across the board, begins to lose its value.

Historically though, gold has been seen as a valuable commodity during times of inflation, as people begin to look for something more stable and with more of a history to rely upon. And under President Trump, inflation seems to be on the rise, which means gold prices should see a significant boost as well.

2. Government Debt

As with inflation, during times of economic crisis, investors tend to look towards those assets that hold their value through the troubles, despite what happens in the intermediary periods. One of those darlings is precious metals, or more specifically, gold.

United States debt has always been less than stellar, but recently, the Congressional Budget Office expects to see the deficit increase from $1 trillion this year to nearly $1.2 trillion every year over the next decade. Paying off the interest on the debt alone will most likely outpace military spending alone by the year 2023, according to some analysts.

As mentioned before, savvy investors will turn to a more stable asset during these times, which means you should see the price of gold rise accordingly with the national debt.

3. Decreasing Supply

Economics 101 teaches that as the supply of something decreases and the demand for it grows, the value will increase as well. This is precisely what is happening with gold.

Because the price of gold has taken a downturn as of late, the companies that traditionally mine for gold have scaled back their operations, which creates a limited supply of gold while the demand continues to increase. If it goes up dramatically, you could see the price of gold skyrocket. It’s best to get in on that boom now before the price of gold becomes almost unreasonable.

4. Cheap Stocks

Things that hold their value over time are traditionally good buys whenever their value tends to be marked down, as is the case of gold right now. More specifically, gold mining stocks are almost at an all-time low, which makes them very appealing to investors with an eye to the future and recognizes a good deal when they see one. If you want to invest in an asset that almost always sees a bounce back from low prices, gold mining stocks are your buy.

Filed Under: Hard Assets Tagged With: Gold, Hard assets, investing, Investing tips

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

About Invest Better

Invest Better is dedicated to helping our readers build wealth and success through strategic investment learnings. Our team of experts are constantly learning and analyzing to develop the latest investment strategies. Subscribe to our blog to find new opportunities to grow your investment portfolio.

Trending Topics

  • PRESERVING WEALTH THROUGH HARD ASSET INVESTMENTS

Recent Posts

  • Why Should I Invest in Hard Assets?
  • Brian Gefter and Event Trends
  • Why Match Group Is a Better Stock than Twitter
  • Marijuana Stocks Are A Wise Investment
  • Where Real Estate and Stocks Fit in a Portfolio

Copyright © 2019 ยท Invest Better