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Are 1-ounce gold bars a safe investment this October?

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Gold bullion leaning on a stack of gold ingots. Illustration of the concept of precious metal trade and wealth
Investing in 1-ounce gold bars could pay off right now, but there are some risks to this approach, too.

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The gold market has experienced tremendous growth throughout 2024, drawing attention from both experienced and new investors. Gold prices began their meteoric rise in early March, reaching $2,160 per ounce — an 8% increase from the previous high set in December 2023. The upward trend continued in the months following, and the price of gold is now closing in on $2,800 per ounce. This sustained price rally has delivered significant returns for those who bought in earlier this year, or in the months or years prior.

The uptick in gold’s price isn’t the only reason investors are flocking to this precious metal right now, though. Many investors are turning to gold to protect against the uncertain economic environment that’s looming. After all, the stability that gold can offer, particularly during periods of market volatility, makes it a popular choice for protecting wealth. However, prices are sitting at historic highs, leaving many potential investors feeling cautious about buying in.

In turn, the question on many investors’ minds is whether investing in gold, and specifically in 1-ounce gold bars, is really a safe bet given the unusual gold market. So are these types of gold bars the right addition to your portfolio this October? Here’s what to know.

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Are 1-ounce gold bars a safe investment this October?

Whether 1-ounce gold bars are a smart choice this October depends largely on your investment strategy. In general, though, these types of gold bars continue to offer benefits for many investors. For starters, gold has long been recognized as a safe haven asset, meaning it tends to retain or increase in value during periods of market turbulence, inflation or geopolitical instability. Unlike paper currency, which can be devalued by inflation or government policies, gold has intrinsic value that has stood the test of time. This makes 1-ounce gold bars a reliable option for preserving wealth over the long term.

Another reason 1-ounce gold bars are considered a safe investment in nearly any economic environment is their liquidity. These bars are easily traded in the global market, and their smaller size makes them more accessible to a wide range of investors. So, whether you’re a seasoned investor or someone looking to diversify for the first time, 1-ounce bars offer flexibility. If you ever need to sell, they are widely recognized and accepted by dealers, making it easy to convert them back into cash or trade for other assets.

When you buy 1-ounce gold bars, you’re also investing in a tangible asset. That differs from investing in assets like stocks or bonds, which are financial instruments tied to market performance. As a result, gold isn’t directly impacted by corporate earnings reports, interest rates or political decisions — at least not in the same way traditional securities are. Its value, while subject to market fluctuations, tends to move independently of stocks and bonds, offering a hedge against volatility in other parts of a portfolio. 

Gold is not subject to credit or counterparty risk, either. Owning physical gold, including 1-ounce bars, means you hold a tangible asset in your possession, which is not dependent on a company’s solvency or financial performance. This feature makes gold a reliable safeguard against potential financial crises where paper assets or digital assets may falter.

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What to consider before buying 1-ounce gold bars

While 1-ounce gold bars are typically a safe bet overall, there are several factors you may want to consider before buying in. One is your investment horizon. Gold is best suited for those with a long-term outlook, and while the price has been rising, the short-term price volatility generally means that those looking for quick gains may be disappointed. If immediate liquidity is a priority, other asset classes may offer more flexibility.

Another important factor is your risk tolerance. While gold tends to rise during periods of uncertainty, its price can still fluctuate, sometimes sharply, over the shorter term. So, investors with a lower risk tolerance might want to allocate just a small portion of their portfolios to gold to mitigate the potential volatility.

For portfolios heavily weighted toward traditional assets like stocks or bonds, adding gold can reduce overall risk by providing a hedge against inflation and market downturns. However, storage and security costs for physical gold should also be factored into the decision, as properly securing gold bars can add to the overall expense and complexity of the investment.

The bottom line

Despite the rising price, 1-ounce gold bars remain a generally safe investment. Their smaller size makes them an accessible option for many investors, allowing for portfolio diversification without a substantial capital outlay. However, it’s essential to consider your financial strategy, risk tolerance and long-term goals before diving into gold at its current price levels. Ultimately, 1-ounce gold bars can provide stability and protection within a well-diversified portfolio, but they are not a one-size-fits-all solution. Careful evaluation of the market and your personal financial needs is critical before making any investment decision.



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Accused Gilgo Beach serial killer charged with murder of 7th woman

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Accused Gilgo Beach serial killer charged with murder of 7th woman – CBS News


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Rex Heuermann, the accused Gilgo Beach serial killer, has been charged with a seventh murder. Suffolk County District Attorney Raymond Tierney announced the new charge Tuesday.

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Lawmakers scramble on government funding as shutdown deadline nears

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Washington — Congressional leaders have yet to unveil their plan to keep the government funded through the spring, prompting concerns about thwarting a shutdown before a Friday night deadline.

House Speaker Mike Johnson, who has repeatedly said that the stopgap funding measure’s release was imminent in recent days, said Tuesday morning that he expected to the text of what’s known as a continuing resolution would be made public by the end of the day. The bill would maintain current funding levels until March 14, giving lawmakers more time to reach agreement on new spending bills when the GOP controls both the House and the Senate.

“The CR is coming together, bipartisan work is ongoing,” Johnson said. “We’re almost there.” 

The speaker said lawmakers have been “working around the clock to get the CR done,” noting that it was intended to be “a very simple, very clean” stopgap funding measure to get the party into the new year. But the Louisiana Republican said a “couple of intervening things” have occurred, citing the devastation caused by hurricanes Helene and Milton earlier this year. Johnson said the stopgap measure includes disaster relief that is “critically important,” and provides aid to farmers. 

“What would have been a very skinny, very simple clean CR, these other pieces have been added to it,” Johnson said. 

Johnson noted that House Republicans are aiming to resolve the government funding fight earlier in the year, before the March 14 deadline in the continuing resolution.

Speaker of the House Mike Johnson arrives for the House Republican Conference caucus meeting in the Capitol on Tuesday, Dec. 17, 2024.
Speaker Mike Johnson arrives for the House Republican Conference caucus meeting in the Capitol on Tuesday, Dec. 17, 2024. 

Bill Clark/CQ-Roll Call, Inc via Getty Images


On the timing of the measure to keep the government funded this week, the speaker said he believes in adhering to rule that gives members 72 hours to review legislation before it’s brought to the floor, which would push a vote on the stopgap measure until Friday. And he said House Republican leadership is committed to passing the continuing resolution through the regular process, including by going through the House Rules Committee, where it’s almost certain to face opposition from GOP hardliners that could further slow the path to passage.

Meanwhile, lawmakers on the party’s right flank have already expressed opposition to the stopgap measure. Rep. Chip Roy, a Texas Republican who sits on the Rules Committee, told reporters after the House GOP conference meeting Tuesday morning that “this is not the process that we signed up for,” saying lawmakers are supposed to be able to amend and debate key legislation on the House floor. 

“We get this negotiated crap and we’re forced to eat this crap sandwich,” Roy said. “Why? Because freaking Christmas is right around the corner. It’s the same dang thing every year — legislate by crisis, legislate by calendar, not legislate because it’s the right thing to do.”

Johnson has previously expressed distaste for large end-of-year funding measures known as omnibuses, and pledged to avoid the practice of pushing through spending before the holiday recess. He defended the continuing resolution Tuesday, saying “it is not an omnibus” and arguing that it will put the party in a position to “put our fingerprints on what those final spending bills are” in the new year.

The frustration comes as Johnson faces a referendum on his job performance in a matter of weeks, with the chamber set to vote to elect a speaker in the new year. 

“Everybody knows we have difficult circumstances,” Johnson said, when asked about how the funding fight could weigh on the speaker vote. “We’re doing the very best we can under those circumstances.” 



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Trump could target Affordable Care Act and Medicaid to help pay for lower taxes, experts say

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The Affordable Care Act, also known as Obamacare, remains popular with the public, garnering the approval of 54% of U.S. adults, according to a recently released Gallup poll. But experts say that may not insulate the federal health insurance program from change as President-elect Donald Trump and his fellow Republicans look to renew $4 trillion in expiring tax cuts.

Many provisions of the 2017 Tax Cuts and Jobs Act (TCJA), a signature law passed during Trump’s first term, are due to sunset at the end of 2025. Republican leaders are now strategizing on how to extend the cuts, while the president-elect has also pledged to slash corporate taxes and eliminate taxes on workers’ tips and overtime pay. 

But renewing the TCJA tax breaks alone without reducing federal spending would add nearly $4 trillion to the nation’s deficit through 2035, according to the Committee for a Responsible Federal Budget, an advocacy group focused on reducing the nation’s debt.

Trump has already taken two of the biggest government programs — Social Security and Medicare — off the table for potential cuts. Reduced defense spending is also viewed as unlikely, meaning nearly half of federal spending would be protected, Larry Levitt, executive vice president for health policy at KFF (formerly Kaiser Family Foundation,) said in a recent JAMA article. 

That leaves “Medicaid, which is the next largest source of federal spending, and the ACA as prime targets for spending cuts. The math is inescapable,” Levitt stated.

Will Trump repeal the ACA?

By contrast, an outright repeal of the ACA is unlikely. While Trump has continued to criticize the health care expansion measure, he has retreated from his previous vows to axe the ACA entirely.

“President Trump will deliver on his pledge to make his highly successful tax cuts permanent and ease the financial burden on families across the country. He will also end the drain on our health care system so that our country can continue to care for Americans who rely on Medicaid, Medicare and Social Security,”  Trump-Vance Transition Spokesperson Anna Kelly told CBS News.

Support for the ACA hit a record 55% in 2017, the first time a majority of Americans approved of the health care law since Gallup started asking about it in 2012. That high watermark came a month after failed efforts by then-President Trump and the GOP to repeal and replace the law.

“The Affordable Care Act is still politically divisive, but overall more popular with the public than ever,” Levitt told CBS MoneyWatch. “It’s unlikely Republicans will try to repeal the ACA again, but cuts to the ACA and Medicaid are quite possible if Republicans are looking to pay for tax cuts.”

Brad Ellis, senior director at Fitch Ratings, noted that Trump and Republican lawmakers have expressed interest in changing how the ACA operates, including introducing high-risk participant pools and possibly reducing subsidies for public exchange business. Such changes could hurt enrollment, he said in a recent report. 


JD Vance asked about Trump’s “concepts of a plan” for health care

07:00

During the presidential campaign, Trump said he had “concepts of a plan” to replace the ACA. 

“Obamacare stinks,” Trump recently told NBC News’ “Meet the Press. “If we come up with a better answer, I would present that answer to Democrats and to everybody else and I’d do something about it.”

Big cuts without lifting a finger

Republicans can make big cuts to the ACA simply by standing pat. That’s because enhanced ACA premium subsidies, which were enacted after President Biden was elected and the Democrats took control of Congress, are scheduled to lapse along with the 2017 tax cuts at the end of 2025. The drop in financial aid ACA enrollees would increase out-of-pocket premiums by an average of $705 a year, or 79%, according to a KFF analysis.

The Congressional Budget Office projects that letting the additional ACA subsidies expire would reduce the federal deficit by $335 billion over a decade, relative to extending them permanently. 

Enrollment in the ACA nearly doubled to a record 21 million after the enhanced subsidies went into effect. The CBO estimates that 6.9 million fewer people would be enrolled in ACA Marketplace plans without the subsidies, and 3.4 million more would be uninsured. 

The impact would be felt nationwide, but particularly in Southern states that have not expanded Medicaid eligibility under the ACA, according to Levitt, who noted that the five states with the fastest growth in ACA enrollment since 2020 are Georgia, Mississippi, South Carolina, Tennessee and Texas. 

“Health care was not a big topic during the campaign, so I can imagine that voters could be surprised to see cuts to Medicaid and the ACA that they didn’t hear about during the campaign,” Levitt said. “As frustrated as people are with the current state of health insurance, disrupting the status quo makes them nervous.”

Medicaid a target for cuts?

Medicaid accounts for more than $600 billion a year in federal spending and covers 81 million people, according to KFF. 

“There are indications that support for Medicaid will decrease under the new administration, suggesting lower enrollment and revenue headwinds for this program,” stated Fitch’s Ellis. 

Trump was silent on Medicaid during the 2024 campaign, but his budget proposals during his first administration included a plan to cap federal spending on Medicaid. The Project 2025 plan prepared by the Heritage Foundation and a coalition of conservative groups, is recommending changes to Medicaid including a limit on federal spending.

“The centerpiece of several prominent plans — Project 2025, the Republican Study Committee fiscal year 2025 (RSC) budget and the fiscal year 2025 House GOP budget resolution — is to cap and deeply cut federal Medicaid funding,” Edwin Park, a research professor at the Georgetown University McCourt School of Public Policy’s Center for Children and Families, noted in September.

Trump sought distance himself from Project 2025 in the months leading up to the election, criticizing some of its policy proposal as “abysmal.”

But Levitt said the ACA and Medicaid could still end up facing cuts as the Republicans, who will control the White House and both houses of Congress, hash out their fiscal plans after President-elect Trump assumes office. 

“So much depends on whether there is pressure to pay for tax cuts with spending reductions. If Republicans are willing to cut taxes and increase the deficit, we may not see big cuts to the ACA and Medicaid,” said Levitt. “There are Republicans who may insist on spending cuts to offset tax cuts. If that’s the case, the ACA and Medicaid are very likely to be on the chopping block.” 



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