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4 signs you should invest in gold now
Gold has long been a favored investment, but interest in the precious metal has surged in recent years due to mounting economic pressures. With inflation remaining stubbornly high throughout 2022 and 2023, many investors sought out safer assets to protect their wealth, with gold standing out for its ability to hedge against inflation. That increased demand was further fueled by concerns over rising interest rates and persistent geopolitical tensions, which prompted investors to view gold as a stable and reliable option.
As we inch closer to the end of 2024, though, the economic landscape is transforming. Inflation has finally cooled, offering some relief to consumers and investors alike and the Federal Reserve has finally begun cutting interest rates, with more rate reductions expected through 2025. These dynamics are creating an environment where many investors are reassessing their strategies to ensure their portfolios can weather what’s next.
Amid these shifts, though, the case for investing in gold remains compelling. Here, we’ll break down a few signs that you may want to invest in gold now, despite the shifts occurring within the economic landscape.
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4 signs you should invest in gold now
If you’re wondering whether you should invest in gold right now, the following signs could indicate that this is the right moment to make your move:
Inflation has cooled — but risks remain
After a few years of high inflation, the inflation rate has dropped to a three-year low and is now hovering near the Fed’s target of 2%. While this is a welcome relief for many, it doesn’t mean inflation risks have entirely disappeared. The economy can and often does change quickly, and there’s always a chance that inflation could rise again in the future.
Gold has always been a reliable hedge against inflation, maintaining its value when the purchasing power of currencies diminishes. So while inflation is low now, the future remains uncertain. Adding gold to your portfolio, then, could be a way to preserve your wealth if and when the inflationary cycles shift.
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The Federal Reserve has started cutting interest rates
The Fed made its first rate cut in mid-September and analysts expect that these cuts will continue into 2025 — with at least two more 25 basis point cuts expected before the end of the year. This matters because lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
When rates are low, the appeal of gold increases because investors don’t lose out on the higher interest they could be earning elsewhere. As rates drop, gold becomes more attractive as a store of value, particularly if the Fed continues on this path for an extended period. Lower rates also tend to weaken the dollar, which can further boost gold prices.
Stock market volatility is picking up
While the stock market has remained strong overall this year, there have been a few instances of stock market volatility recently. That can be scary, considering that this type of volatility can result in your portfolio’s value plunging significantly and it can happen in a matter of minutes. If you’re wary of the stock market’s penchant for unpredictable swings, gold could be a way to hedge against this volatility.
When stocks experience sharp corrections or significant fluctuations, gold typically performs well, providing a layer of stability in your portfolio. So, if you’re concerned about the possibility of a more significant market downturn or prolonged volatility, adding gold to your investment mix now can help reduce your overall portfolio risk.
Gold prices are higher than ever
Gold prices have surged to several all-time highs over the last several months, reflecting growing demand for the asset in an uncertain economic climate. While you might hesitate to invest when gold prices are at a peak, many experts believe that gold still has room to grow — and could even reach $3,000 per ounce soon.
If prices continue to rise, getting in now could help you benefit from further appreciation. But if you wait, you could be priced out if gold’s price continues its impressive upward ascent, as many experts expect it to do, at least over the shorter term.
The bottom line
The current economic environment presents several compelling reasons to invest in gold. While inflation has cooled, the Fed’s rate cuts and increased stock market volatility create a landscape where gold’s safe-haven appeal is particularly strong. And while gold prices are at record highs, there’s an expectation that its price may increase over time, so this may be the perfect time to add gold to your investment portfolio — especially if you want to capitalize on future price growth.
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Gazan chefs cook up hope and humanity for online audience
Renad Atallah is an unlikely internet sensation: a 10-year-old chef, with a repertoire of simple recipes, cooking in war-torn Gaza. She has nearly a million followers on Instagram, who’ve witnessed her delight as she unpacks parcels of food aid.
We interviewed Renad via satellite, though we were just 50 miles away, in Tel Aviv. [Israel doesn’t allow outside journalists into Gaza, except on brief trips with the country’s military.]
“There are a lot of dishes I’d like to cook, but the ingredients aren’t available in the market,” Renad told us. “Milk used to be easy to buy, but now it’s become very expensive.”
I asked, “How does it feel when so many people like your internet videos?”
“All the comments were positive,” she said. “When I’m feeling tired or sad and I want something to cheer me up, I read the comments.”
We sent a local camera crew to Renad’s home as she made Ful, a traditional Middle Eastern bean stew. Her older sister Noorhan says they never expected the videos to go viral. “Amazing food,” Noorhan said, who added that her sibling made her “very surprised!”
After more than a year of war, the Gaza Strip lies in ruins. Nearly everyone has been displaced from their homes. The United Nations says close to two million people are experiencing critical levels of hunger.
Hamada Shaqoura is another chef showing the outside world how Gazans are getting by, relying on food from aid packages, and cooking with a single gas burner in a tent.
Shaqoura also volunteers with the charity Watermelon Relief, which makes sweet treats for Gaza’s children.
In his videos online, Shaqoura always appears very serious. Asked why, he replied, “The situation does not call for smiling. What you see on screen will never show you how hard life is here.”
Before dawn one recent morning in Israel, we watched the UN’s World Food Program load nearly two dozen trucks with flour, headed across the border. The problem is not a lack of food; the problem is getting the food into the Gaza Strip, and into the hands of those who desperately need it.
The UN has repeatedly accused Israel of obstructing aid deliveries to Gaza. Israel’s government denies that, and claims that Hamas is hijacking aid.
“For all the actors that are on the ground, let the humanitarians do their work,” said Antoine Renard, the World Food Program’s director in the Palestinian territories.
I asked, “Some people might see these two chefs and think, well, they’re cooking, they have food.”
“They have food, but they don’t have the right food; they’re trying to accommodate with anything that they can find,” Renard said.
Even in our darkest hour, food can bring comfort. But for many in Gaza, there’s only the anxiety of not knowing where they’ll find their next meal.
For more info:
Story produced by Mikaela Bufano. Editor: Carol Ross.
See also:
“Sunday Morning” 2024 “Food Issue” recipe index
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A study to devise nutritional guidance just for you
It’s been said the best meals come from the heart, not from a recipe book. But at this USDA kitchen, there’s no pinch of this, dash of that, no dollops or smidgens of anything. Here, nutritionists in white coats painstakingly measure every single ingredient, down to the tenth of a gram.
Sheryn Stover is expected to eat every crumb of her pizza; any tiny morsels she does miss go back to the kitchen, where they’re scrutinized like evidence of some dietary crime.
Stover (or participant #8180, as she’s known) is one of some 10,000 volunteers enrolled in a $170 million nutrition study run by the National Institutes of Health. “At 78, not many people get to do studies that are going to affect a great amount of people, and I thought this was a great opportunity to do that,” she said.
It’s called the Nutrition for Precision Health Study. “When I tell people about the study, the reaction usually is, ‘Oh, that’s so cool, can I do it?'” said coordinator Holly Nicastro.
She explained just what “precise” precisely means: “Precision nutrition means tailoring nutrition or dietary guidance to the individual.”
The government has long offered guidelines to help us eat better. In the 1940s we had the “Basic 7.” In the ’50s, the “Basic 4.” We’ve had the “Food Wheel,” the “Food Pyramid,” and currently, “My Plate.”
They’re all well-intentioned, except they’re all based on averages – what works best for most people, most of the time. But according to Nicastro, there is no one best way to eat. “We know from virtually every nutrition study ever conducted, we have inner individual variability,” she said. “That means we have some people that are going to respond, and some people that aren’t. There’s no one-size-fits-all.”
The study’s participants, like Stover, are all being drawn from another NIH study program called All Of Us, a massive undertaking to create a database of at least a million people who are volunteering everything from their electronic health records to their DNA. It was from that All of Us research that Stover discovered she has the gene that makes some foods taste bitter, which could explain why she ate more of one kind of food than another.
Professor Sai Das, who oversees the study at Tufts University, says the goal of precision nutrition is to drill down even deeper into those individual differences. “We’re moving away from just saying everybody go do this, to being able to say, ‘Okay, if you have X, Y and Z characteristics, then you’re more likely to respond to a diet, and somebody else that has A, B and C characteristics will be responding to the diet differently,'” Das said.
It’s a big commitment for Stover, who is one of 150 people being paid to live at a handful of test sites around the country for six weeks – two weeks at a time. It’s so precise she can’t even go for a walk without a dietary chaperone. “Well, you could stop and buy candy … God forbid, you can’t do that!” she laughed.
While she’s here, everything from her resting metabolic rate, her body fat percentage, her bone mineral content, even the microbes in her gut (digested by a machine that essentially is a smart toilet paper reading device) are being analyzed for how hers may differ from someone else’s.
Nicastro said, “We really think that what’s going on in your poop is going to tell us a lot of information about your health and how you respond to food.”
Stover says she doesn’t mind, except for the odd sounds the machine makes. While she is a live-in participant, thousands of others are participating from their homes, where electronic wearables track all kinds of health data, including special glasses that record everything they eat, activated when someone starts chewing. Artificial intelligence can then be used to determine not only which foods the person is eating, but how many calories are consumed.
This study is expected to be wrapped up by 2027, and because of it, we may indeed know not only to eat more fruits and vegetables, but what combination of foods is really best for us. The question that even Holly Nicastro can’t answer is, will we listen? “You can lead a horse to water; you can’t make them drink,” she said. “We can tailor the interventions all day. But one hypothesis I have is that if the guidance is tailored to the individual, it’s going to make that individual more likely to follow it, because this is for me, this was designed for me.”
For more info:
Story produced by Mark Hudspeth. Editor: Ed Givnish.
“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.
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