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Why you should invest in gold this August
Investors looking for a relatively safe and inexpensive place to park their money may want to turn away from traditional investments and start considering some alternative ones now, particularly at the start of a new month. With inflation cooling close to the Federal Reserve’s aim of 2% and a cut to the federal funds rate as high as 50 basis points looming for September, the economy will soon change, perhaps dramatically.
Against this backdrop, Americans will need to measure their investments for returns and safety carefully. Understanding this, some may want to turn to gold and precious metals.
Investing in the yellow metal, specifically, hit an 11-year high last September thanks, in part, to its ability to hedge against inflation and diversifying stagnant portfolios. And while the economy has changed since that point, the price of gold has surged in the interim, breaking numerous records so far this year. To take advantage of this unique timing, investors should consider adding some gold to their portfolios this August. Below, we’ll break down three reasons why they should do so now.
Start exploring your best gold investment options online here.
Why you should invest in gold this August
Here are three compelling reasons why you should invest in gold this month:
The price is rising
The price of gold has surged so far in 2024, starting at $2,063.73 per ounce on January 1 to $2,431.11 per ounce, where it sits as of August 5 – an almost 18% rise. With any investment, it’s smart to buy in low and sell high. And while today’s gold price isn’t exactly cheap, it could still be worth investing in now if the price continues to soar as it has.
This will not only put you in possession of a rising asset, but it could offer the rare opportunity to turn a quick profit if you sell it at a higher price later this year. That’s a surprising benefit of investing in gold now, which is often better known for protecting other, more volatile assets versus generating income.
Get started with gold here today.
Your portfolio needs a buffer
A changing environment in which inflation continues to cool, interest rate cuts are issued and unemployment rises are bound to affect your current investments. And, more volatile ones like stocks and bonds, could act in unpredictable ways. In scenarios like this, then, it’s critical to add a buffer to your portfolio for protection.
Gold can be that asset. By maintaining and often rising in value during economic periods like the ones we’ve just experienced, gold helps keep your overall portfolio afloat. Just make sure to limit your investment to 10% or less of your portfolio to avoid damaging the growth potential of your other assets.
It’s a tangible asset
In uneven and unpredictable economic periods like we’re facing now, some investors may feel more comfortable investing their money in something tangible versus something more abstract. This is where gold can help, particularly if invested in traditional types like gold bars and coins.
And it won’t be hard to find, as these types are seemingly ubiquitous right now, sold from top gold investing companies to local dealers to big retailers like Costco and Walmart. Just be sure to know the pros and cons of investing in physical metals and the potential storage costs of doing so to improve your chances of investing success.
Start investing in gold bars and coins here now.
The bottom line
This August could be a smart time for prospective gold investors to get started. With the price of the metal rising, the likely need for a buffer in your existing portfolio and the feature of holding a tangible asset in an unpredictable economic climate, gold offers multiple advantages for those investors who act now. Just be sure to carefully weigh the benefits and drawbacks of this unique asset before getting started to ensure that it’s the move for your unique financial situation.
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Tupperware files for bankruptcy amid slumping sales
Tupperware and some of its subsidiaries filed for Chapter 11 bankruptcy protection, the once-iconic food container maker said in a statement late Tuesday.
The company has suffered from dwindling sales following a surprise surge during the COVID-19 pandemic, when legions of people stuck at home tried their hands at cooking, which increased demand for Tupperware’s colorful plastic containers with flexible airtight seals.
A post-pandemic rise in costs of raw materials and shipping, along with higher wages, also hurt Tupperware’s bottom line.
Last year, it warned of “substantial doubt” about its ability to keep operating in light of its poor financial position.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” president and CEO Laurie Ann Goldman said in a statement announcing the bankruptcy filing.
“As a result, we explored numerous strategic options and determined this is the best path forward,” Goldman said.
The company said it would seek court approval for a sale process for the business to protect its brand and “further advance Tupperware’s transformation into a digital-first, technology-led company.”
The Orlando, Florida-based firm said it would also seek approval to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
The firm’s shares were trading at $0.5099 Monday, well down from $2.55 in December last year.
Tupperware said it had implemented a strategic plan to modernize its operations and drive efficiencies to ignite growth following the appointment of a new management team last year.
“The Company has made significant progress and intends to continue this important transformation work.”
In its filing with the U.S. Bankruptcy Court for the District of Delaware, Tupperware listed assets of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion.
The filing also said it had between 50,000 and 100,000 creditors.
Tupperware lost popularity with consumers in recent years and an initiative to gain distribution through big-box chain Target failed to reverse its fortunes.
The company’s roots date to 1946, when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression,” according to Tupperware’s website.
“If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste.”
Over time, Tupper’s containers became popular that many people referred to any plastic food container as Tupperware. And people even threw “Tupperware parties” in their homes to sell the containers to friends and neighbors.
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JD Vance echoes Trump, blames Democrats for apparent assassination attempt
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