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Gold prices are falling. 5 smart moves to make now
Over the last few months, investors have been flocking to the gold market to try and capitalize on the precious metal’s seemingly endless uptick in price. The price of gold began climbing earlier this year but went into overdrive in March, with the price of gold hitting its first record of the year on March 8 — prompting more investors to buy in. And, that trend continued into April, with gold’s price ascending to another high on April 1 before outperforming the prior record once again in late May.
The upward price trajectory for gold didn’t stop there, though. On July 18, the price of gold climbed to over $2,472 per ounce, its latest record high. However, the price of gold has moderated somewhat since that point, dropping from nearly $2,500 an ounce to where it sits today at $2,371.45 per ounce (as of July 26, 2024). That’s a decline of about 4% in just over a week.
And, with the cooling inflation rate and the upcoming Federal Reserve meeting, gold prices could continue this downward trend, at least over the short term. That’s not necessarily a bad thing, though. While some investors may be wary of today’s falling gold prices, this could be a good entry point.
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Gold prices are falling. 5 smart moves to make now
Here are a few moves to consider in the current gold market climate.
Seize the opportunity to acquire physical gold
One of the most significant moves to make during a price downturn is purchasing physical gold. As prices fall, the cost of entry for physical gold ownership decreases, presenting an opportunity to acquire tangible assets at a discount. This strategy is particularly impactful for investors who believe in gold’s long-term value as a hedge against inflation and economic uncertainty.
While this approach requires more hands-on management than some alternatives, it also offers direct ownership and control over your investment. So, you may want to consider buying gold coins or bars — but make sure you do so from reputable dealers while ensuring proper authentication. And, storage and insurance costs should be factored into your investment strategy, as these can impact your overall returns.
Learn about the benefits that gold can offer to your investment portfolio.
Open a gold IRA for a tax-advantaged approach
Opening a gold individual retirement account (IRA) is another strategic move you may want to make during this price dip. These specialized accounts allow you to hold physical gold and other precious metals as part of your retirement portfolio, combining the benefits of gold ownership with tax advantages.
By funding a gold IRA when prices are low, you can potentially benefit from long-term appreciation while enjoying tax-deferred or tax-free growth. This approach is particularly impactful for those looking to diversify their retirement savings and protect against potential currency devaluation or economic instability.
Focus on a dollar-cost averaging strategy
If you’re wary of trying to time the gold market bottom, dollar-cost averaging can be a prudent and impactful strategy. This approach involves regularly investing a fixed amount in gold, regardless of its price. By spreading purchases over time, you can potentially lower your average gold cost per ounce and mitigate the risks associated with market volatility.
This matters right now because dollar-cost averaging is especially effective during periods of falling prices, as it allows you to accumulate more gold for the same dollar amount as prices decline. This strategy also helps remove any emotional decision-making from the investment process.
Consider gold mining stocks and gold ETFs
If you would prefer exposure to gold without the complexities of physical ownership, investing in gold mining stocks and gold-focused exchange-traded funds (ETFs) can be a highly impactful move right now. That’s because, during price slumps, gold mining company stocks often experience even steeper declines than gold itself, potentially offering greater upside when the market recovers.
Gold ETFs, on the other hand, provide a more diversified approach to gold investing, tracking the price of gold or a basket of gold-related securities. A big benefit of these investing instruments is that they offer the liquidity of stocks combined with exposure to gold prices. And, this strategy allows you to benefit from gold price movements without the need for storage or insurance.
Diversify your portfolio within the precious metal sector
Diversifying into silver, platinum or palladium can also be a smart move during a gold price slump. After all, these metals often have different price drivers and industrial applications, providing a hedge against gold-specific market fluctuations.
By spreading your investments across various precious metals, you can potentially reduce risk while still maintaining exposure to the sector. Other metals may also be undervalued relative to gold during a gold price slump, offering the potential for outperformance as market conditions shift.
The bottom line
Falling gold prices may seem like a sign to avoid the gold market, but these types of price dips can present significant opportunities — especially for more strategic investors. By focusing on the strategies outlined above and maintaining a long-term perspective, you may be able to turn the current gold price slump into a golden opportunity for portfolio growth and diversification. Just make sure to do your homework first and ensure that any steps you’re taking fully align with both your investment goals and your needs.
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New discoveries could rewrite the history of early Americans — and the 4-ton sloths they lived with
Sloths weren’t always slow-moving, furry tree-dwellers. Their prehistoric ancestors were huge – up to 4 tons – and when startled, they brandished immense claws.
For a long time, scientists believed the first humans to arrive in the Americas soon killed off these giant ground sloths through hunting, along with many other massive animals like mastodons, saber-toothed cats and dire wolves that once roamed North and South America.
But new research from several sites is starting to suggest that people came to the Americas earlier – perhaps far earlier – than once thought. These findings hint at a remarkably different life for these early Americans, one in which they may have spent millennia sharing prehistoric savannas and wetlands with enormous beasts.
“There was this idea that humans arrived and killed everything off very quickly – what’s called ‘Pleistocene overkill,'” said Daniel Odess, an archaeologist at White Sands National Park in New Mexico. But new discoveries suggest that “humans were existing alongside these animals for at least 10,000 years, without making them go extinct.”
Some of the most tantalizing clues come from an archaeological site in central Brazil, called Santa Elina, where bones of giant ground sloths show signs of being manipulated by humans. Sloths like these once lived from Alaska to Argentina, and some species had bony structures on their backs, called osteoderms – a bit like the plates of modern armadillos – that may have been used to make decorations.
In a lab at the University of Sao Paulo, researcher Mírian Pacheco holds in her palm a round, penny-sized sloth fossil. She notes that its surface is surprisingly smooth, the edges appear to have been deliberately polished, and there’s a tiny hole near one edge.
“We believe it was intentionally altered and used by ancient people as jewelry or adornment,” she said. Three similar “pendant” fossils are visibly different from unworked osteoderms on a table – those are rough-surfaced and without any holes.
These artifacts from Santa Elina are roughly 27,000 years old – more than 10,000 years before scientists once thought that humans arrived in the Americas.
Originally researchers wondered if the craftsmen were working on already old fossils. But Pacheco’s research strongly suggests that ancient people were carving “fresh bones” shortly after the animals died.
Her findings, together with other recent discoveries, could help rewrite the tale of when humans first arrived in the Americas – and the effect they had on the environment they found.
“There’s still a big debate,” Pacheco said.
“Really compelling evidence”
Scientists know that the first humans emerged in Africa, then moved into Europe and Asia-Pacific, before finally making their way to the last continental frontier, the Americas. But questions remain about the final chapter of the human origins story.
Pacheco was taught in high school the theory that most archaeologists held throughout the 20th century. “What I learned in school was that Clovis was first,” she said.
Clovis is a site in New Mexico, where archaeologists in the 1920s and 1930s found distinctive projectile points and other artifacts dated to between 11,000 and 13,000 years ago.
This date happens to coincide with the end of the last Ice Age, a time when an ice-free corridor likely emerged in North America – giving rise to an idea about how early humans moved into the continent after crossing the Bering land bridge from Asia.
And because the fossil record shows the widespread decline of American megafauna starting around the same time – with North America losing 70% of its large mammals, and South America losing more than 80% – many researchers surmised that humans’ arrival led to mass extinctions.
“It was a nice story for a while, when all the timing lined up,” said paleoanthropologist Briana Pobiner at the Smithsonian Institution’s Human Origins Program. “But it doesn’t really work so well anymore.”
In the past 30 years, new research methods – including ancient DNA analysis and new laboratory techniques – coupled with the examination of additional archaeological sites and inclusion of more diverse scholars across the Americas, have upended the old narrative and raised new questions, especially about timing.
“Anything older than about 15,000 years still draws intense scrutiny,” said Richard Fariña, a paleontologist at the University of the Republic in Montevideo, Uruguay. “But really compelling evidence from more and more older sites keeps coming to light.”
In Sao Paulo and at the Federal University of Sao Carlos, Pacheco studies the chemical changes that occur when a bone becomes a fossil. This allows her team to analyze when the sloth osteoderms were likely modified.
“We found that the osteoderms were carved before the fossilization process” in “fresh bones” – meaning anywhere from a few days to a few years after the sloths died, but not thousands of years later.
Her team also tested and ruled out several natural processes, like erosion and animal gnawing. The research was published last year in the journal Proceedings of the Royal Society B.
One of her collaborators, paleontologist Thaís Pansani, recently based at the Smithsonian Institution, is analyzing whether similar-aged sloth bones found at Santa Elina were charred by human-made fires, which burn at different temperatures than natural wildfires.
Her preliminary results suggest that the fresh sloth bones were present at human campsites – whether burned deliberately in cooking, or simply nearby, isn’t clear. She is also testing and ruling out other possible causes for the black markings, such as natural chemical discoloration.
“A giant ground sloth”
The first site widely accepted as older than Clovis was in Monte Verde, Chile.
Buried beneath a peat bog, researchers discovered 14,500-year-old stone tools, pieces of preserved animal hides, and various edible and medicinal plants.
“Monte Verde was a shock. You’re here at the end of the world, with all this organic stuff preserved,” said Vanderbilt University archaeologist Tom Dillehay, a longtime researcher at Monte Verde.
Other archaeological sites suggest even earlier dates for human presence in the Americas.
Among the oldest sites is Arroyo del Vizcaíno in Uruguay, where researchers are studying apparent human-made “cut marks” on animal bones dated to around 30,000 years ago.
At New Mexico’s White Sands, researchers have uncovered human footprints dated to between 21,000 and 23,000 years ago, as well as similar-aged tracks of giant mammals. But some archaeologists say it’s hard to imagine that humans would repeatedly traverse a site and leave no stone tools.
“They’ve made a strong case, but there are still some things about that site that puzzle me,” said David Meltzer, an archaeologist at Southern Methodist University. “Why would people leave footprints over a long period of time, but never any artifacts?”
Odess at White Sands said that he expects and welcomes such challenges. “We didn’t set out to find the oldest anything – we’ve really just followed the evidence where it leads,” he said.
While the exact timing of humans’ arrival in the Americas remains contested – and may never be known – it seems clear that if the first people arrived earlier than once thought, they didn’t immediately decimate the giant beasts they encountered.
And the White Sands footprints preserve a few moments of their early interactions.
As Odess interprets them, one set of tracks shows “a giant ground sloth going along on four feet” when it encounters the footprints of a small human who’s recently dashed by. The huge animal “stops and rears up on hind legs, shuffles around, then heads off in a different direction.”
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