CBS News
3 gold investing mistakes to avoid right now
Getty Images
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.
Learn more about your top gold investing options online today.
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.
Get started with gold here now.
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.
CBS News
Transcript: “Face the Nation” excerpt of Norah O’Donnell interview with Vice President Kamala Harris
NORAH O’DONNELL: Israel launched an attack on Iran-
VICE PRESIDENT KAMALA HARRIS: Yeah.
NORAH O’DONNELL: -that has raised fears of a widening conflict in the Middle East. What is your message to Iran?
VICE PRESIDENT KAMALA HARRIS: Well, first of all, do not respond. It would be a mistake. And we are prepared to defend Israel, as we have before. We will again. But the critical point is that there must be a de-escalation in the region. And we are working through diplomatic channels and other channels to ensure that there is a de-escalation in the region.
NORAH O’DONNELL: Is there any indication, based on the intelligence that you’ve seen, that Iran wants to respond?
VICE PRESIDENT KAMALA HARRIS: I can’t speak to that, but we’ve been very clear as the United States that they should not respond and that it would be a mistake.
NORAH O’DONNELL: What are the consequences if they do?
VICE PRESIDENT KAMALA HARRIS: I’ll keep you posted.
Vice President Kamala Harris said Saturday she believes “it would be a mistake” for Tehran to respond to Israel’s counterstrike on Iran.
In an interview with “CBS Evening News” anchor and managing editor Norah O’Donnell conducted on the campaign trail in Kalamazoo, Michigan, Harris said her message to Iran was “do not respond.”
“It would be a mistake,” the Democratic presidential candidate said. “And we are prepared to defend Israel, as we have before. We will again. But the critical point is that there must be a de-escalation in the region. And we are working through diplomatic channels, and other channels, to ensure that there is a de-escalation in the region.”
Early Saturday morning local time, the Israeli military launched a series of what it described as “precise strikes on military targets” in response to Iran’s Oct. 1 missile attack on Israel in which it fired about 200 ballistic missiles.
While explosions were heard in Tehran, according to Iranian state media, Iran’s military appeared to downplay the attack, with a government spokesperson saying the strikes caused only “limited damage.” Iranian state media said four soldiers were killed.
Speaking to reporters in Philadelphia Saturday on his way to a campaign event, Biden said that he received a head’s up from Israel prior to the attacks.
“It looks like they didn’t hit anything other than military targets,” Mr. Biden said. “My hope is this is the end.”
And in a call with reporters, a senior Biden administration official said the U.S. did not participate in the operation, describing Israel’s attack as an “act of self-defense.”
The senior official said that Mr. Biden last week spoke to Prime Minister Benjamin Netanyahu and “encouraged” him “to design a response that served to deter further attacks against Israel while reducing risk of further escalation.”
A spokesperson for Netanyahu’s office said in a statement that “Israel chose in advance the targets of the attack in accordance with its national interests, and not according to American dictates.”
When asked about Netanyahu’s relationship with the Biden administration in an interview with “60 Minutes” earlier this month, Harris responded, “I think, with all due respect, the better question is, do we have an important alliance between the American people and the Israeli people.”
The Biden administration in August approved $20 billion in weapons sales to Israel.
Harris declined to say if U.S. intelligence indicated that Iran wants to respond, reiterating that the U.S. stance is that Tehran “should not respond and that would be a mistake.”
And when pushed on whether there would be consequences for such an Iranian response, Harris said, “I’ll keep you posted.”
CBS News
Pennsylvania top election official says that 2020 ligation upheld that “elections were accurate”
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Transcript: “Face the Nation” excerpt of Norah O’Donnell interview with Vice President Kamala Harris
Harris warns Iran not to respond to Israel’s counterstrike: “It would be a mistake”
Pennsylvania top election official says that 2020 ligation upheld that “elections were accurate”
Transcript: “Face the Nation” excerpt of Norah O’Donnell interview with Vice President Kamala Harris
Harris warns Iran not to respond to Israel’s counterstrike: “It would be a mistake”