It’s never a bad time to re-evaluate your financial health and investment strategy. This is particularly true in today’s unique economic climate with strong job growth, elevated inflation and the highest interest rates in decades. Against this backdrop, some investments may be more beneficial than others. For many, recent economic developments have underlined the advantage of investing in gold. 

Thanks to its ability to hedge against inflation (by maintaining its value during turbulent economic times) and diversify portfolios (when other assets falter), investing in the precious metal has surged, hitting an 11-year high last September. And the price of the precious metal has broken numerous records in recent weeks. But while it’s important to know the nuances of gold investing and the benefits it offers, it’s also critical to avoid some simple (but easy to make) mistakes. Below, we’ll detail three gold investing mistakes to avoid right now.

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3 gold investing mistakes to avoid right now

Here are three missteps to avoid with a gold investment today.

Not investing at all

In addition to the inflation and portfolio diversification benefits gold traditionally offers, the current climate also offers investors a rare opportunity to turn a quick profit. While not typically known as an income-producing investment (it’s more of a safe-haven asset to protect your other classes), the price of the metal has surged since March 1. It’s risen by hundreds of dollars per ounce over that time and many experts are expecting it to increase further. So don’t make the mistake of skipping this investment in its entirety. By acting now, not only will you secure the traditional advantages of gold, but you can also position yourself to potentially earn a quick return.

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Investing in the wrong type

As beneficial as gold can be, you can easily diminish those advantages by investing in the wrong type. Gold comes in various forms from gold IRAs to gold bars and coins to gold ETFs and more. Each type has unique pros and cons and some (like physical gold that’s easy to buy and sell) may be better than others (like gold stocks which are hard to manage and predict) in today’s climate. So get invested, but take the time to choose the best type for your individual needs and goals. And make sure to read reviews of all the top gold companies so that you can improve your chances of success, no matter which type you ultimately choose.

Overinvesting 

During times of inflation and higher costs like we are experiencing right now it can be tempting to overinvest in assets that can help offset losses felt elsewhere. But don’t make that mistake with gold. As the precious metal is generally a way to help other assets instead of growing at their same pace, it’s important to not overinvest in the precious metal. Most experts recommend limiting the gold portion of your portfolio to a maximum of 10%, but the difference between 1% and 10% will largely depend on your specific investor profile. Just don’t get tempted to overinvest past that mark in order to let your other assets freely operate. 

The bottom line

Now is a great time to invest in safe-haven assets like gold. To get the most out of this unique asset, however, beginners should avoid some simple mistakes. They shouldn’t totally skip the investment in favor of other, less reliable types but, at the same time, they shouldn’t overinvest and push out the benefits other assets can provide. Finally, prospective gold investors should do their research to ensure that they’re putting their investment dollars in the best type of gold investment for their needs. By taking these steps and avoiding these errors now investors can significantly improve their chances of gold success both now and in the future.