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3 big risks of waiting for gold prices to fall
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Gold has been a standout performer in the financial markets this year, with prices climbing rapidly and setting new records. At the start of the year, gold was trading at just above $2,000 per ounce, but its value has soared past multiple milestones in recent months, and, today, gold prices hover above $2,650 per ounce. This upward trend has resulted in big rewards for early investors who saw the precious metal as a safe haven in uncertain economic times. Those who got in before prices surged are now enjoying substantial gains.
For investors who have yet to buy gold, though, the current high prices present a dilemma. Many are hesitant to jump in at a time when the price is near a record high and are instead waiting in hopes that prices will retreat, allowing them to purchase gold at a discount. This cautious approach makes sense in traditional investing logic. After all, buying low and selling high is the golden rule. But in the case of gold, waiting for lower prices may not be as wise as it seems.
While it’s tempting to wait for a price drop, the reality is that this gold investing strategy could be fraught with risks — especially right now. Below, we’ll analyze why.
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3 big risks of waiting for gold prices to fall
Waiting for gold’s price to drop could be a risky bet for the following reasons:
Gold’s price may not drop substantially
One of the primary risks in waiting to buy gold at a lower price is the possibility that the anticipated dip may never happen — or may not be as substantial as you hope. Recent trends in the gold market have shown that while gold’s price may experience short-term fluctuations, these dips have not been drastic. Part of the reason is that gold tends to be highly resilient historically, particularly in times of economic uncertainty, like what we’re facing today. Economic issues tend to push the price of gold higher rather than lower.
Even when gold prices have dipped recently, those drops have been short-lived, bouncing back quickly. In some cases, these dips have been quickly followed by the price of gold reaching new highs. This pattern makes it difficult to predict the market. So, waiting for a significant drop could mean missing out on the chance to buy gold at all. If the price continues to rise — and analysts are already predicting that it will — those waiting for a cheaper entry point could be left empty-handed.
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Your portfolio could be vulnerable without it
Gold has long been considered a hedge against stock market volatility, economic downturns and inflation. And while the stock market has performed well recently, it has experienced heightened volatility in recent months. This matters because when the market underperforms or experiences wild fluctuations, gold tends to shine as a stable store of value. This makes gold an essential component of a well-balanced investment portfolio, providing a level of protection against broader market risks.
If you delay investing in gold while waiting for lower prices, you may leave your portfolio vulnerable to future market shocks, should they occur. Gold provides a critical layer of security during such times, and without it, your portfolio may be overly exposed to short-term market shocks that gold could have helped to cushion.
You could miss out on quick returns
While gold is often viewed as a long-term investment, it also presents opportunities for short-term gains, particularly in today’s rapidly rising market. While the price is currently high, many analysts believe that gold’s price is far from reaching its peak — and some experts predict that it could soon hit $3,000 per ounce or higher. If this upward trend continues, buying now — even at the current high prices — could result in significant profits in the near future.
By waiting for a price drop, though, you may miss out on these potential gains. Market timing is notoriously difficult, and even if gold prices were to dip slightly, the price could quickly rebound, leaving those who waited with no opportunity to benefit from the current rally. Investing in gold now could allow you to take advantage of the potential for short-term profits while also securing a position in a valuable long-term asset. And if gold continues to climb, today’s prices may soon seem like a bargain.
The bottom line
Investing in gold has long been a strategy for preserving wealth and protecting portfolios against volatility, so it makes sense to add it to your portfolio, but if you’re waiting for lower prices to enter the market, that may not be the most prudent approach. The price of gold may not drop substantially and delaying your investment could leave your portfolio vulnerable to stock market fluctuations. You might also miss out on an opportunity for both short- and long-term profits. So, given the current trajectory of gold prices and the uncertain economic environment, now may be the right time to consider investing in gold rather than waiting for a dip that may never come.
As Florida and the Southeast recover from two major hurricanes, conspiracy theories and falsehoods have surged to levels that the head of the Federal Emergency Management Agency says are unprecedented. First responders, local officials and nonprofit organizations in the storm zones have had to dedicate time and resources to debunking false claims.
Officials say these falsehoods have real-world consequences, including preventing victims from evacuating or seeking help, distracting from recovery efforts and making the job of aid workers harder.
And while the scale of misinformation following Helene and Milton took some by surprise, the claims themselves follow a familiar pattern. Similar misinformation has followed other hurricanes and natural disasters, including exaggerated crime reports, fake or misleading visuals and outright scams. Researchers say understanding the misinformation is crucial to mitigating its spread and minimizing its impact.
Here is a look at some of the recurring themes to watch out for:
Unverified crime scares
In the aftermath of Helene, rumors spread online that people were slashing tires of trucks transporting aid to storm victims, a claim that local police said is not true.
Unverified crimes reports have followed storms for decades. After Hurricane Katrina devastated parts of Louisiana in 2005, officials later said claims of looting, murder, and rape, which were repeated by some news media and officials, were either exaggerated or false.
At one point, the Mayor of New Orleans reported multiple murders at the Louisiana Superdome, where thousands sheltered. The National Guard later said there were no homicides at the stadium.
A 2018 report by the Department of Homeland Security found that false claims often spread after disasters because verified information is slow to emerge, fuelling rumor and speculation.
Conspiracies
Jennie King, director of Climate Disinformation Research and Policy at the Institute for Strategic Dialogue, said conspiracies blaming the government for hurricanes have also become routine. Researchers at the institute found this claim and others debunked by FEMA generated more than 160 million views online after Helene.
“If it is producing a visceral emotion, negative or positive, that should cause you to pause for breath,” King said. “Do a little bit of wider reading. And if you do find out that those claims are false or unsubstantiated, don’t give them additional oxygen.”
Fake or misleading photos or videos
Edited or misleading videos and images have become a regular feature of major weather events. As Hurricane Dorian approached Florida in 2019, old images circulated online that pushed false claims of looting.
After Sandy hit New York and New Jersey in 2013, researchers identified over 10,000 unique posts on Twitter, now called X, that contained fake images.
One of these images was the now-famous “street shark” — an edited image of a shark swimming along a highway — which has reappeared during multiple hurricanes since at least 2011.
Fact checkers also regularly debunk images and videos of landmarks and transportation hubs submerged in water, which can mislead the public during natural disasters.
A digitally altered image of planes under flood waters, created by an artist in an effort to warn about the potential impact of climate change, was falsely described as showing the effects of hurricanes in 2017 and 2018.
And after Hurricane Milton hit Florida, AI-generated images appearing to show flooding at Disney World spread online on multiple platforms.
AI tools have made it easier for people to publish misleading or completely fabricated visuals, according to Anupam Joshi, who co-authored a study on misleading visuals after Hurricane Sandy.
“You need to take everything you see online with a very healthy grain of salt,” said Joshi, the director of the University of Maryland, Baltimore County Cybersecurity Institute.
Scams
Scammers often target victims of hurricanes and those wishing to help them. After Hurricane Katrina, scammers impersonated charities including the Red Cross, which was one of the reasons the U.S. Department of Justice established the National Center for Disaster Fraud.
Jun Zhuang, a researcher who studied misinformation online following Hurricanes Harvey and Irma, told CBS News that scammers solicit money from victims through fraudulent links.
“‘Hey, if you register to this link, you will get $200.’ Or the other way around, ‘Hey, please donate through this link,’ but you never know where your money is going to,” said Zhuang.
Historically, bad actors also target storm victims with offers of assistance. After Hurricane Sandy, fake “contractors” claimed that FEMA would reimburse survivors for damage assessments and rapid repairs to their homes. One of these scammers defrauded 30 people of about $1.9 million.
To avoid falling victim to scams, FEMA has advised people to be wary of unsolicited messages and to verify charities before donating.
Boeing on Friday said it’s cutting 10% of its workforce, or about 17,000 employees.
In a in a memo Friday, CEO Kelly Ortberg announced the layoffs, writing that the aerospace giant must make “tough decisions” to stay competitive. Ortberg added that the company is also delaying its program to develop the 777X airplane and halting production of the 767 aircraft after it delivers the remaining 767 planes that have been ordered by customers.
The layoffs and production changes come amid a labor dispute at Boeing, with 33,000 machinists going on strike last month after failing to agree on a contract. The aerospace giant’s finances and reputation have also taken a hit this year due to manufacturing problems and multiple federal investigations, following a mid-air panel blowout in January.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg in the memo. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Ortberg, the former head of aerospace company Rockwell Collins, joined Boeing as CEO in August, replacing outgoing CEO Dave Calhoun in the wake of increased regulatory scrutiny sparked by production problems at the storied company.
In his Friday memo, Ortberg said the layoffs will include executives, managers and employees, and take place within the “coming months.”
Washington — Former President Donald Trump’s campaign requested military assets to enhance his security in the final weeks of the campaign in the wake of threats to his life, two sources familiar with the matter told CBS News.
In emails to the White House and the Secret Service late last week, the Trump campaign requested that a military aircraft be used to transport the former president before the election, according to the sources. The request also included expanded flight restrictions over Trump’s residences and campaign rallies, as well as the use of ballistic glass — a security measure the former president is already receiving.
The Washington Post first reported the requests Friday.
The development follows two assassination attempts against Trump since July. He was also the target of an alleged murder-for-hire plot involving a Pakistani national with ties to Iran. The country holds the former president and his administration officials responsible for a drone strike that killed Iranian Maj. Gen. Qasem Soleimani in 2020.
President Biden seemed receptive to the enhanced campaign security measures on Friday, telling reporters he “told the department to give him every, every single thing he needs.”
“As long as he doesn’t ask for F-15s,” Mr. Biden said at the White House.
He said the Republican presidential nominee should be treated as if “he were a sitting president.”
“If it fits within that category, that’s fine,” he added. “But if it doesn’t, he shouldn’t.”
The enhanced security is a break from precedent. No presidential nominee or former president in recent history has been transported by military plane before an election.
After the second assassination attempt against Trump, Mr. Biden signed a bipartisan bill that bolsters the Secret Service protection for major presidential and vice presidential candidates. The bill requires Secret Service to apply the same standards in determining the number of agents needed to protect the president, vice president and the major candidates for those offices.
In a statement to CBS News, Secret Service spokesperson Anthony Guglielmi said Trump “is receiving the highest levels of protection.”
“Assistance from the Department of Defense is regularly provided for the former President’s protection, to include explosive ordnance disposal, canine units, and airlift transportation,” he said. “Other enhancements the Secret Service has is providing includes Temporary Flight Restrictions (TFRs) over the former President’s residence and when he travels. Additionally, the former President is receiving the highest level of technical security assets which include unmanned aerial vehicles, counter unmanned aerial surveillance systems, ballistics and other advanced technology systems.”
Guglielmi said the Secret Service will “continue to adjust and enhance its protective posture as needed to mitigate evolving threats.”
contributed to this report.
Boeing will lay off 10% of its employees as a strike by factory workers cripples airplane production
Beware the “street shark” and other common hurricane rumors and misinformation
Judge considers releasing man convicted of teen’s 2008 murder
Boeing will lay off 10% of its employees as a strike by factory workers cripples airplane production
Beware the “street shark” and other common hurricane rumors and misinformation