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With gold’s price high, should you sell or invest more?
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Gold investments come with many benefits. They can serve as a hedge against inflation, offset risk in your portfolio and offer a solid way to protect your wealth for the long haul. And in recent years, many consumers have bought in.
That high demand has pushed the price of gold upward, with the average price per ounce reaching record highs several times just this year alone. Depending on economic conditions, the price of gold could keep rising as we get into 2025.
What does that mean if you already hold gold in your portfolio? Depending on your goals, it could be a good time to cash in and net some profits. For others, expanding your gold investments may be a better idea. Here’s how experts say you can decide.
Add gold to your portfolio today.
Who should sell their gold right now
If you’ve had your gold investments for a while, they’re likely worth a lot more today than when you bought them. So, if you’re in need of cash or would otherwise need to borrow money to cover an upcoming expense, selling some or all of those assets now — while prices are rising — might be the move to make.
“If you are looking to lock in your profits on gold, then now may be a good time,” says Eric Elkins, CEO of financial consulting firm Double E. “Thus far in 2024 gold is up 29%.”
Just be aware that if you plan to buy back into gold at a later date, you could eat into those profits if the pricing is not right.
“If you wanted to sell today and wait until the price drops to buy back in, you can do that,” Elkin says. “However, you run the risk of the price of gold increasing after you sell and losing potential gains.”
Another scenario in which you might want to consider selling your gold? If its share of your portfolio has grown too much.
Generally speaking, experts recommend allocating no more than 5% to 10% of your total portfolio to gold. With the recent run-up in prices, assets that originally made up only 5% of your portfolio could easily well exceed that today.
“If the gold position has outgrown its allocation as part of your overall portfolio, then maybe it’s time to rebalance and get gold back to the original position,” says Christopher Mediate, president of Mediate Financial. “This would take some profits off the table and allocate the profit to another asset class that has underperformed — allowing you to buy that position low.”
Compare your gold investing options now.
Who should invest more in gold
Investing more into gold is a good idea if you’re looking for a long-term investment.
“It’s very hard to predict the best time to buy gold,” Elkins says. “However, if you plan on holding your gold for the long term, then generally it never hurts to get started today… At the end of the day, you are buying a secure asset class that typically won’t have dramatic fluctuations in volatile markets, and it’s a great hedge in your investment portfolio to limit risk if we have domestic or global economic downturns or market returns.”
Elkins recommends taking a dollar-cost averaging approach, which has you invest a set amount into an asset rather than paying attention to that asset’s price at the time.
“For example, if I had $1,000 to invest in gold, I would take $100 and invest that amount into gold every week until I hit my $1,000 total investment,” Elkins says. “This allows you to invest slowly and minimize the risk of the price of gold plummeting after your initial investment.”
You can also consider buying more gold if you want to safeguard your money against inflation. While inflation has decreased in recent months, it’s still above 2%, meaning the cost of goods and services has increased over the last year.
“The biggest benefit to investing in gold, of course, is to hedge against inflation,” says Nick Fulton, managing partner of USA Pawn Stores of Mississippi and chairman of the Mississippi Pawnbrokers Association. “If you invested in an ounce of gold on October 1, 2023, the value was $1,848 an ounce. A year later it’s $2,635. Now picture in your hand $1,848 in cash that you hung onto for a year. What does it look like today with groceries, the rise in the cost of living and all other expenses?”
The bottom line
If you do opt to purchase more gold, there are many ways to go about it. You can buy gold bars and coins, open a gold IRA, purchase gold stocks or ETFs, and more.
Get in touch with a financial or investment advisor if you need help choosing the right investments for your portfolio.
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Mark Harmon, widely known for playing Special Agent Leroy Jethro Gibbs on the hit CBS drama “NCIS,” is stepping behind the camera as the executive producer and narrator of a new spin-off prequel, “NCIS: Origins.”
After nearly two decades in the role, Harmon is now helping bring to life the early years of Gibbs, with actor Austin Stowell portraying a young version of the iconic character.
“You come in and audition here for years and years, and all of a sudden, you’re presented with a badge with your name on it,” Stowell said about now working on the Paramount lot.
The show’s set features scenes at Camp Pendleton, including locations like Daley’s Tavern, a bar just off-base. For Stowell, it is a role of a lifetime.
“I felt very confident in what I could bring to the character, and then the second you walk in the room, that all goes out the window,” Stowell said.
Casting the role of young Gibbs in “NCIS: Origins” was a significant decision for the team, as it meant finding someone to take on the character that Harmon made iconic. The prequel, set in 1991, explores Gibbs’ early days as a rookie agent.
Harmon saw the project as an opportunity to dive deeper into the character’s backstory, introducing a Giibbs that has never been seen before in the original series.
“This is a chance to really kind of dig into it,” said Harmon
The role also brings a more personal and emotional storyline for Gibbs, one that explores his grief after the loss of his wife and child.
“He’s in rough shape,” Harmon said.
Stowell has drawn on his personal experiences to portray Gibbs’ pain. His father died by suicide four years ago.
“Loss is something we all deal with and for Gibbs, this is something that has cracked him to his core, said Stowell.
Harmon has been a steady presence on set, offering guidance to Stowell and the rest of the cast.
“From day one, Mark has been available,” Stowell said. “He’s so good at allowing the people who are on this show to feel like they are supported.”
Harmon made it clear that this new chapter of “NCIS” belongs to the younger cast.
“I’m there to help and to talk to them or to tell them what I remember from being in this for a while. But this is their thing,” Harmon said.
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After a four-year period in which interest rates hit record lows and then rose to decades-highs, the Federal Reserve started cutting interest rates again in September. A half a percentage point cut, sparked by cooling inflation numbers, was issued on September 18. And with unemployment and inflation declining in September, too, additional cuts of 25 basis points each look likely for the next two Fed meetings in November and December.
While this is welcome news for borrowers, it will detract from the big returns savers have been accustomed to in recent years. This is particularly true for those who have opened or are considering opening a certificate of deposit (CD). That said, CD interest rates haven’t declined so dramatically as to render these unique savings vehicles unworthy. Savers can still earn hundreds and potentially thousands of dollars with the right CD account – even now.
But there are some smart CD moves savers should make now, before the next rate cut, to earn that big return. Below, we’ll break down three of them.
Start by seeing how much more you could be earning on your money with a top CD here.
3 smart CD moves to make before the next rate cut
While CDs are still a safe and predictable way to earn a substantial return on your money, this high rate cycle could soon be coming to a close. Savers who have yet to take advantage, then, or those considering another account, should make the following moves now — before the Fed takes additional action:
Determine your budget
The more you deposit into a CD the more you’ll earn. That simple calculation, however, doesn’t account for any early withdrawal penalties you’ll need to pay if you withdraw your money prematurely. These penalties range from lender to lender but they can easily negate any earnings you’ve accumulated to that point. So, first, determine your budget. Figure out precisely how much you can afford to deposit and for how long you can lock it away. Once you have this amount and length of time (CD term), determined, you’ll be ready to take next steps.
Get started with a CD online now.
Shop around for lenders
Don’t just head to your local bank branch to open a CD. Often, the best CD rates and terms are found with online banks versus those with physical locations. But even all online lenders are not the same as some will require higher minimum deposits or other requirements to earn a high rate. So shop around for lenders to find one offering the best rates for the amount of money you’re comfortable depositing. And be sure to understand the early withdrawal penalties and any other fees or maintenance costs that could affect your returns before getting started.
Open a long-term CD
A long-term CD will mature anywhere between 18 months and 10 years. Once you’ve determined how much money you can comfortably afford to deposit, consider one of these accounts instead of a short-term one now. Currently, short-term CDs have slightly higher rates than long-term ones do. But those accounts will mature in just a few months, at which point rates will likely be lower. But long-term CDs have competitive rates now (in the 4% to 5% range), allowing savers to earn big returns for years to come, even if the larger rate climate cools during that time frame. And because of the locked rate nature of these accounts, you’ll be able to determine with precision your exact earnings upon account maturity.
The bottom line
Rate-cutting action on behalf of the Federal Reserve should spur savers who haven’t take advantage of the current high rate climate (or those who want to continue to) to make a move now – and they should do so with a CD. Specifically, savers should determine their budget in order to deposit as much as they can comfortably afford. But they should also shop for lenders to find one offering the highest rates, specifically for long-term CDs, which can help savers weather what appears to be a cooling rate climate.
Have more questions? Learn more about your current CD options here.