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4 important gold investing moves experts say to make this fall
In an economy with elevated but cooling inflation, a volatile stock market, and other factors, diversifying your investments is more important than ever. Gold is a popular choice for this purpose, as it works as a safe haven, often protecting your dollars against inflation and fluctuations in other asset classes.
It can also provide growth, as evidenced by gold’s price climbing from under $2,000 per ounce to more than $2,400 per ounce over the last eight months. In fact, according to the World Gold Council, it’s one of the highest-performing asset classes of the year so far, offering year-to-date returns of over 12%.
Are you considering investing in gold this year? We asked some experts for their suggestions on how to approach the investing as we head into the fall.
Start by exploring the top gold investing options available to you here now.
4 important gold investing moves experts say to make this fall
Considering a gold investment heading into the cooler months? Here’s how some experts suggest you proceed:
Buy sooner than later
There are two reasons you may want to buy gold now, despite its high price. For one, though it already hit record highs this year, there’s still room for growth.
“It’s difficult to find an investment that has outperformed gold,” says James Cordier, a commodities expert and founder of the Cordier Commodity Report. “Yet it still has fundamental factors pointing towards a continuation of this trend.”
It’s true: If the Federal Reserve moves to cut interest rates this fall, gold prices could jump further. Studies show that interest rates and gold prices tend to have an inverse relationship, wherein one rises and the other falls. But this is not always the case.
Fed Chairman Jerome Powell has already indicated a rate cut is “on the table” for its September meeting, but recent inflation data — which shows inflation below 3% for the first time in years — makes that even more of a possibility. According to the CME Group FedWatch Tool, there’s a 100% probability of a rate cut in September — either 25 or 50 basis points.
The fact that many central banks have been buying up gold in recent years is a good sign, too, Cordier says.
“For the last two years running, records have been broken by what’s considered to be ‘strong hands’ — a phrase commonly used in the commodity industry for what’s considered to be ultra-long-term investors,” he says. “Central banks have been these large buyers, and historically speaking, they’re excellent company to have when investing in gold.”
On top of the potential growth gold has to offer, there’s also the risk of a recession or dip in the stock market to consider. If this were to happen, investments in gold could help provide some protection.
“Gold represents a portfolio hedge since it does not move in sync with the stock market,” says Rick Miller, an investment advisor representative and owner of Miller Investment Management in Manassas, Virginia. “There is plenty of evidence to support the recession contention.”
Get started with gold here today.
Sell if you need the cash
If you already own gold investments, selling now could net you some serious profits, depending on when you bought in. So if you need cash or are nearing retirement or some other period of need, you may want to take a look at your portfolio and what those assets could be worth.
“For those with positions in gold — especially long-term ones, now would be an excellent time to take some profits,” Miller says.
If you don’t need the cash anytime soon though, you may want to hold onto those investments a little longer. If gold prices rise, as stated above, it could mean more growth and more profits.
Keep your investments reasonable
Most financial professionals recommend devoting only 5% to 10% of your portfolio to gold.
“Generally, it’s a good idea not to invest too much of any portfolio in any one single asset class,” says David Hollander, founder of Liberty Group, a wealth management firm in California. Hollander notes that allocating as little as 2% of your portfolio to gold could give you “sufficient exposure” to the metal.
Still, think carefully about your goals, budget and timeline when deciding how much to allocate.
“Our research indicates that even a modest 4% gold allocation can significantly enhance returns and reduce volatility compared to the traditional 60/40 portfolio without gold,” says Ben Nadelstein, head of content at precious metals marketplace Monetary Metals. “You could go as high as 20% for optimal results, depending on your investment objectives.”
Explore different avenues
While physical coins and bars might be the first thing that comes to mind when eyeing gold investments, there are actually many more options you can explore — each with different potential risks, opportunities for growth and more.
If you’re saving for retirement, for instance, a gold IRA may be something to look into. You can also invest in gold stocks or mining companies, or there are gold ETFs (exchange-traded funds) you can buy shares of, too.
A good investment professional can help advise you on how to best invest in gold. They can also talk to you about how much to allocate to achieve your financial goals.
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Tracking the hours before a young Minnesota woman became a murder victim
On Dec. 15, 2022, Matthew Ecker was headed to work when he said he got a frantic call from his former co-worker and friend Alex Pennig. He said Pennig told him she got in a fight with her boyfriend Shane Anderson and was scared of what he might do. So, Ecker took his gun, which he owned legally, and drove to Pennig’s St. Paul, Minnesota, apartment.
Ecker arrived around 2 p.m. He would later say his only reason for going to Pennig’s was to protect her.
Early the next morning, Pennig was shot dead in her apartment. Detectives used surveillance footage to piece together her final moments.
The altercation
Pennig and Ecker went out to a few bars that evening and ended up at Camp Bar at 12:30 a.m. on Dec. 16, 2022. Anderson was at the bar. Surveillance video shows he walked over to Pennig and began talking to her. Ecker walked over to the two of them. Things got heated, and when Ecker stepped in between Pennig and Anderson, Anderson punched him. Anderson was kicked out of the bar and Pennig and Ecker stayed for about an hour drinking and chatting.
Matthew Ecker and Alex Pennig arrive home for the night
At 2:05 a.m., Pennig and Ecker arrive at her apartment building after walking there from Camp Bar.
A return to the lobby
At 2:24 a.m., Pennig and Ecker are seen back in the lobby as they walk out of the building. Ecker would later say he was going to his car to get his headphones. Pennig (pictured) returned first and waited in the vestibule for Ecker. She paces around looking at her phone.
Alex Pennig last seen alive
Ecker returns two minutes after Pennig at 2:30 a.m. The two then walk through the lobby and go back up to Pennig’s apartment. This is the last time Pennig was seen alive.
St. Paul police officers arrive on scene
At 2:50 a.m., Ecker called 911 and reported that Pennig shot herself in the head. St. Paul police officers raced to the apartment building and Ecker let them inside at 2:56 a.m.
Matthew Ecker’s story
After leading police officers to Pennig’s apartment, Ecker sat in the hallway, appearing distressed and emotional. Officer Justina Hser approached him and began asking him what happened. Their conversation, which lasted nearly an hour, was captured on her body camera. Ecker told her everything was fine between him and Pennig and that they did not have an argument. He said she grabbed his gun out of his backpack, backed into the bathroom and locked the door. Moments later, Ecker said he heard a shot, so he broke open the bathroom door to find Pennig laying on the floor with a gunshot wound to her left temple.
The weapon
Responding officers located the gun. It was on Pennig’s chest with her left hand resting on top. They noted that this seemed odd. One officer then moved the gun to the sink (pictured) to place it in a safe position.
Notable evidence
Ecker had told officers he washed his hands after trying to help Pennig, which is why his hands were clean. But the officers noticed that the bathroom sink was dry when they arrived. If Ecker had just washed his hands, detectives believed the sink probably would have still been wet.
A lack of evidence on Matthew Ecker
Ecker was interviewed by detectives around 6:30 a.m. on Dec. 16, 2022. He had no visible blood on his body or his clothes. It was later discovered that Ecker also had no gunshot residue on him.
The defining evidence
While Ecker was being interviewed at the police station, the forensic unit processing the scene notified detectives that they had found a new piece of evidence once Pennig’s body was moved. It was a metal piece of the bathroom door lock, and it was discovered on the floor where Pennig’s head was. The detectives suspected that when Ecker broke open the door, that small metal piece landed on the bathroom floor. According to the detectives’ theory, Ecker broke open the bathroom door, then Pennig was shot and fell on top of the piece. They say this proves the bathroom door was forced open before Pennig was shot, and that Ecker had lied to them.
The accused: Matthew Ecker
On Dec. 19, 2022, Matthew Ecker is formally charged with second-degree murder. Ecker denies killing Alex Pennig.
The trial of Matthew Ecker
On Feb. 8, 2024, Ecker’s trial begins. Eight days later, on Feb. 16, 2024, he is found guilty of second-degree murder.
Matthew Ecker sentencing
On April 3, 2024, Ecker is sentenced to 30 years in prison. He is appealing his conviction.
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