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3 smart gold investing moves to make with inflation rising
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At the start of 2024, many Americans were optimistic that inflation was permanently cooling and relief would soon be on the horizon. Unfortunately, that hasn’t been the case in the first quarter of the year, with inflation reports in January, February and March disappointing for many. Now, after inflation increased in the last two months, many are wondering if interest rate cuts will come at all this year. But what should investors do amid this uncertainty?
Many have turned to gold. Investing in the precious metal hit an 11-year high last September. Due to the portfolio diversification it can offer and the traditional hedge against inflation it can act as, it’s understandable why many have turned to gold. And the price of the yellow metal has surged, breaking multiple records in the last few weeks.
To get the most of out a potential gold investment now, however, investors should take certain steps. Below, we’ll break down three smart gold investing moves to make with inflation rising.
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3 smart gold investing moves to make with inflation rising
Here are three moves investors should consider making today with inflation still problematic.
Get started
You can’t obtain the benefits of gold without first being invested, so don’t hesitate to get started now. The price of gold has risen by hundreds of dollars in the past month and currently sits at $2,332.18 per ounce. So if you wait much longer, the price could become prohibitive and you may wind up getting priced out. Plus, with inflation as high as it’s been, it makes sense to add a timely benefit to your portfolio now to offset the corrosive effects inflation may have had on some of your other assets.
Get started by exploring your top gold options online.
Understand what gold can (and can’t do)
To reap the benefits of any investment it’s vital to understand what it can and can’t do. This is particularly true for alternative assets like gold. While gold can be an effective hedge against inflation by maintaining its value when inflation erodes the purchasing power of your money — and it can diversify a portfolio otherwise made of stocks and bonds — it’s not a traditional income-producing investment. So don’t invest expecting to make a quick profit. While that could, in theory, happen now with the price volatility, it’s not something that investors should consider as a feature of their gold investment.
Don’t overinvest
While gold is a smart investment right now, investors should understand that there’s a limit to how much they can benefit from the precious metal. Many experts advise limiting a gold investment to 10% or less of your overall portfolio, thus allowing other assets like stocks and bonds to grow as needed. The range between 1% and 10% of your portfolio, however, will depend on your specific investor profile and your long-term goals. Just be careful not to overinvest, as the benefits of gold could overshadow other income-producing assets.
The bottom line
With inflation on the rise again and investors looking for some additional ways to grow and protect their money, many may want to turn to gold now. It makes sense to get started quickly as the price is rising and, without it, your portfolio could more negatively be impacted by inflation. Just make sure to understand the income-producing ability of gold and don’t be tempted to overinvest. But by making these three smart moves today investors will improve their chances of gold success, both now and in the months to come.
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Wisconsin school shooter was in contact with California man plotting his own attack, court documents say
The shooter who killed a student and teacher at a religious school in Wisconsin brought two guns to the school and was in contact with a man in California whom authorities say was planning to attack a government building, according to authorities and court documents that became public Wednesday.
Police were still investigating why the 15-year-old student at Abundant Life Christian School in Madison shot and killed a fellow student and teacher on Monday before shooting herself, Madison Police Chief Shon Barnes told the Associated Press Wednesday. Two other students who were shot remained in critical condition on Wednesday.
A Southern California judge issued a restraining order Tuesday under California’s gun red flag law against a 20-year-old Carlsbad man. The order requires the man to turn his guns and ammunition into police within 48 hours unless an officer asks for them sooner because he poses an immediate danger to himself and others.
Carlsbad is located just north of San Diego.
According to the order, the man told FBI agents that he had been messaging Natalie Rupnow, the Wisconsin shooter, about attacking a government building with a gun and explosives. The order doesn’t say what building he had targeted or when he planned to launch his attack. It also doesn’t detail his interactions with Rupnow except to state that the man was plotting a mass shooting with her.
CBS’ San Diego affiliate KFMB-TV reported that law enforcement searched the man’s home Tuesday night after the order was signed by the judge.
Police, with the assistance of the FBI, were scouring online records and other resources and speaking with the shooter’s parents and classmates in an attempt to determine a motive for the shooting, Barnes told the AP.
Police don’t know if anyone was targeted in the attack or if the attack had been planned in advance, the chief said. Police said the shooting occurred in a classroom where a study hall was taking place involving students from several grades.
“I do not know if if she planned it that day or if she planned it a week prior,” Barnes said. “To me, bringing a gun to school to hurt people is planning. And so we don’t know what the premeditation is.”
On a Madison city website providing details about the shooting, police disclosed Wednesday that two guns were found at the school, but only one was used in the shooting. A law enforcement source previously told CBS News the weapon used appears to have been a 9 mm pistol.
Barnes told the AP that he did not know how the suspected shooter obtained the guns and he declined to say who purchased them, citing the ongoing investigation.
No decisions have been made about whether Rupnow’s parents might be charged in relation to the shooting, but they have been cooperating, Barnes told the AP.
Abundant Life is a nondenominational Christian school that offers prekindergarten classes through high school. About 420 students attend the institution.
The Dan County Medical Examiner’s Office identified the two people killed Wednesday as 42-year-old Erin West and 14-year-old Rubi Vergara.
An online obituary on a local funeral site stated Vergara was a freshman who leaves behind her parents, one brother, and a large extended family. It described her as “an avid reader” who “loved art, singing and playing keyboard in the family worship band.”
West’s exact position with the school was unclear.
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