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3 reasons to invest in gold as inflation cools
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Inflation has been problematic for much of the last two years, hitting its highest point in more than 40 years in June 2022. That resulted in the Federal Reserve hiking its federal funds rate to its highest point since 2001 to tame it. But inflation has steadily come down since 2022, with the latest report released on Wednesday showing the rate dropping in April to 3.4% from March’s 3.5%. While a small drop, it’s a step in the right direction for borrowers and investors looking for improved portfolio performance.
Against this backdrop, some may find themselves wondering about the benefits of investing in gold. Gold has been a valuable hedge against inflation in recent years and the price of the precious metal has broken numerous records already in 2024. But is it worth investing in as the inflation rate declines or are investors better off looking for alternative assets? Below, we’ll break down why a gold investment still makes sense, even with inflation cooling last month.
Learn more about the benefits a gold investment can provide here now.
3 reasons to invest in gold as inflation cools
Here are three reasons why you should consider investing in gold now, even after the new inflation numbers were released:
The inflation drop was minimal
Sure, inflation fell in April. But the drop was minimal and it came after the rate rose in February and March, respectively. So gold is still beneficial to add to your portfolio now. Thanks to its historic ability to retain and even grow in value during inflationary periods, your portfolio can still use the protection a gold investment can provide. And, considering that the inflation rate is still 1.4% above the Federal Reserve’s target 2% goal, it makes sense to invest in gold until this inflationary cycle is truly finished.
Get started with gold here today.
Gold has other benefits
Gold is popular for its ability to hedge against inflation, but it has other benefits investors can utilize, too. It’s a great portfolio diversifier, for example, by performing differently than stocks and bonds usually do. And unlike those assets, it can be tangible and is easy to buy, sell, and buy again in a variety of physical forms. Finally, right now, gold is ubiquitous and easy to invest in, both online and in-person, requiring less involvement and knowledge than some other assets may require.
The price could become prohibitive
Gold has surpassed numerous price records so far in 2024 and may continue to do so as long as inflation remains a top concern. With the price of gold sitting at $2,365.07 per ounce today, it makes sense to get involved now before the price becomes prohibitive. And considering that a slight uptick in the inflation rate for May could cause that increase, as could multiple other factors, it makes sense to be proactive today even despite the cooler inflation report.
The bottom line
Inflation dropped last month but there’s no telling if that was an anomaly or an indicator of further cooling ahead. In this climate, then, most investors would still be well served by pursuing gold now. After all, the April inflation drop was minimal and gold has other benefits besides just hedging against inflation, anyway. And, with a growing and volatile price now, investors may want to add some gold to their portfolio today before the price prevents them from acting.
Learn more about investing in gold in today’s inflationary climate here.
The International Brotherhood of Teamsters says workers at seven Amazon facilities will begin a strike Thursday morning in an effort by the union to pressure the e-commerce giant for a labor agreement during a key shopping period.
The Teamsters say the workers, who authorized walkouts in the past few days, are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. Amazon says it doesn’t expect any impact on its operations during what the union calls the largest strike against the company in U.S. history.
The Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices.
Amazon is ranked No. 2 on the Fortune 500 list of the nation’s largest companies.
At a warehouse in the New York City borough of Staten Island, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees – including many delivery drivers – have unionized with them by demonstrating majority support but without holding government-administered elections.
The strikes happening Thursday are taking place at an Amazon warehouse in San Francisco and six delivery stations in southern California, New York City, Atlanta and the Chicago suburb of Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join” them, the union said.
“Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement.
“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” he said.
The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board.
Meanwhile, Amazon says the delivery drivers, which the Teamsters have organized for more than a year, aren’t its employees. Under its business model, the drivers work for third-party businesses, called Delivery Service Partners, who drop off millions of packages to customers everyday.
“For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon spokesperson Kelly Nantel said in a statement. “The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union.“
The Teamsters have argued Amazon essentially controls everything the drivers do and should be classified as an employer.
Some U.S. labor regulators have sided with the union in filings made before the NLRB. In September, Amazon boosted pay for the drivers amid the growing pressure.
NEW YORK — The Teamsters union is launching a strike against Amazon at numerous locations across the country, including in Maspeth, Queens.
The Teamsters are calling it the largest strike against Amazon in United States history, and it’s set to begin at 6 a.m. Thursday. In addition to New York City, workers will be joining picket lines in Atlanta, Southern California, San Francisco and Illinois.
In a video announcement released Wednesday night, workers voiced their frustrations.
“Us being strike ready means we’re fed up, and Amazon is clearly ignoring us and we want to be heard,” one worker says in the video.
“It’s really exciting. We’re taking steps for ourselves to win better conditions, better benefits, better wages,” another worker in the video says.
The union says it represents about 10,000 Amazon employees and that Amazon ignored a deadline to come to the table and negotiate. The $2 trillion company doesn’t pay employees enough to make ends meet, the union asserts.
At the height of the holiday season, many are wondering what this means for packages currently in transit.
Teamsters President Sean O’Brien said, “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed.”
Amazon says Teamsters are misleading the public
An Amazon spokesperson says the Teamsters are misleading the public and do not represent any Amazon employees, despite any claims.
“The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union,” the spokesperson said in a statement.
An Amazon representative says the company doesn’t expect operations to be impacted.
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