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3 reasons to invest in gold as inflation cools
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Inflation has been problematic for much of the last two years, hitting its highest point in more than 40 years in June 2022. That resulted in the Federal Reserve hiking its federal funds rate to its highest point since 2001 to tame it. But inflation has steadily come down since 2022, with the latest report released on Wednesday showing the rate dropping in April to 3.4% from March’s 3.5%. While a small drop, it’s a step in the right direction for borrowers and investors looking for improved portfolio performance.
Against this backdrop, some may find themselves wondering about the benefits of investing in gold. Gold has been a valuable hedge against inflation in recent years and the price of the precious metal has broken numerous records already in 2024. But is it worth investing in as the inflation rate declines or are investors better off looking for alternative assets? Below, we’ll break down why a gold investment still makes sense, even with inflation cooling last month.
Learn more about the benefits a gold investment can provide here now.
3 reasons to invest in gold as inflation cools
Here are three reasons why you should consider investing in gold now, even after the new inflation numbers were released:
The inflation drop was minimal
Sure, inflation fell in April. But the drop was minimal and it came after the rate rose in February and March, respectively. So gold is still beneficial to add to your portfolio now. Thanks to its historic ability to retain and even grow in value during inflationary periods, your portfolio can still use the protection a gold investment can provide. And, considering that the inflation rate is still 1.4% above the Federal Reserve’s target 2% goal, it makes sense to invest in gold until this inflationary cycle is truly finished.
Get started with gold here today.
Gold has other benefits
Gold is popular for its ability to hedge against inflation, but it has other benefits investors can utilize, too. It’s a great portfolio diversifier, for example, by performing differently than stocks and bonds usually do. And unlike those assets, it can be tangible and is easy to buy, sell, and buy again in a variety of physical forms. Finally, right now, gold is ubiquitous and easy to invest in, both online and in-person, requiring less involvement and knowledge than some other assets may require.
The price could become prohibitive
Gold has surpassed numerous price records so far in 2024 and may continue to do so as long as inflation remains a top concern. With the price of gold sitting at $2,365.07 per ounce today, it makes sense to get involved now before the price becomes prohibitive. And considering that a slight uptick in the inflation rate for May could cause that increase, as could multiple other factors, it makes sense to be proactive today even despite the cooler inflation report.
The bottom line
Inflation dropped last month but there’s no telling if that was an anomaly or an indicator of further cooling ahead. In this climate, then, most investors would still be well served by pursuing gold now. After all, the April inflation drop was minimal and gold has other benefits besides just hedging against inflation, anyway. And, with a growing and volatile price now, investors may want to add some gold to their portfolio today before the price prevents them from acting.
Learn more about investing in gold in today’s inflationary climate here.
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Sen. Mark Kelly says feds need to do a “better job” of letting Americans know “there’s a huge amount of misinformation” on election
Washington — Sen. Mark Kelly said Sunday that the federal government needs to do its part to inform Americans of the vast swath of election misinformation that’s being consumed on social media platforms like X, TikTok, Facebook and Instagram.
“It’s up to us, the people who serve in Congress and in the White House to get the information out there, that there is a tremendous amount of misinformation in this election, and it’s not going to stop on Nov. 5,” Kelly said on “Face the Nation with Margaret Brennan.”
Kelly, who sits on the Senate Intelligence Committee, said he’s seen these misinformation operations target not only his state of Arizona, but also other battleground states.
“There is a very reasonable chance I would put it in the 20 to 30% range, that the content you are seeing, the comments you are seeing, are coming from one of those three countries: Russia, Iran, China,” Kelly said.
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In a committee hearing last month on foreign threats to the 2024 election, Kelly presented screenshots of Russian-made web pages showing fabricated headlines designed to look like Fox News and The Washington Post, targeted at voters in battleground states.
“So my constituents in Arizona and others — they seek to influence the outcome of these elections, and that is absolutely beyond the pale,” Kelly said at the Sept. 18 hearing. “We’ve got to do something about it.”
Vice President Kamala Harris and former President Donald Trump each have the support of 49% of Arizona voters, according to CBS News’ battleground tracker as of Sept. 30.
In another battleground state, Pennsylvania, Trump returned Saturday to hold a rally in Butler three months after an attempted assassination on him. He was joined by members of his own party and billionaire Elon Musk, who said Trump was the only way to preserve democracy and warned of a last election if he does not win in November.
Speaking to CNN’s State of the Union on Sunday, Kelly called the social media mogul a hypocrite.
“He’s standing next to the guy that tried to overturn the 2020 election on Jan. 6, saying that this is somehow going to be the last election and they’re going to take away your vote,” Kelly said. “And you know, it just doesn’t pass the logic test.”
At the White House press briefing on Friday, President Biden – speaking from the podium for the first time since taking office – said he’s confident of a free and fair election but alluded to the 2021 insurrection at the Capitol in his concerns on whether it will be a peaceful transfer of power.
“The things that Trump has said and the things that he said last time out when he didn’t like the outcome of the election were very dangerous,” Mr. Biden said. “If you notice, I noticed that the vice-presidential Republican candidate did not say he’d accept the outcome of the election, and they haven’t even accepted the outcome of the last election.”
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