CBS News
3 questions beginners should ask before investing in gold
Getty Images
Gold investing has long been a smart and effective way for investors to protect their existing funds and set themselves up for future growth. In recent years, investing in the precious metal has surged thanks to its reputation for hedging against inflation and diversifying portfolios that otherwise would have felt adverse effects from the economic climate. These features are attractive to a wide array of investors, including those just starting with the yellow metal.
That said, like any investment choice, beginners should carefully consider the pros and cons of investing in gold before moving their money. And they should do their best to have the answers to a series of important questions now so that they can improve their chances of gold investing success when they do get started. To that end, below we gathered three important questions beginners should ask before investing in gold.
Are you considering gold now? Learn more about your options here today.
3 questions beginners should ask before investing in gold
Whether you’re a savvy investor or just getting started, gold doesn’t operate in the traditional ways some other, better-known assets do. So beginners need to start thinking of the answers to the following questions as they begin their gold investing journey.
Am I looking to make a quick profit?
As with any investment, the lure to turn a quick profit is strong, particularly with an asset like gold which has experienced more than 14% price growth in the first half of 2024. But it would be a mistake for beginners to invest in gold solely to turn a quick profit.
Instead, gold is considered to be better as a safe-haven asset that protects your portfolio via diversification and the ability to maintain or even grow in value during inflationary periods. While you can, in theory, turn a quick profit if you buy in low and sell quickly (some experts think the price will hit as high as $3,000 per ounce), beginners would be better advised to take a long-term approach to the metal instead.
Learn more about the benefits of investing in gold online now.
How does it fit in with my overall portfolio?
Because of the safe-haven nature of gold, it’s critical to know where it fits in (or doesn’t) with your overall portfolio. This means limiting it to 10% or less of your overall investments so that other, more volatile assets like stocks and bonds can perform as desired.
At the same time, if you have a portfolio already diversified with other, less reliable investments, the 10% gold threshold may be too high and you may want to consider a gold investment in a smaller amount. Only you will know the exact make-up of your portfolio — and where gold can precisely fit in. Just make sure to know where the opening lies before getting started as you could accidentally offset the benefits of other investments with the wrong amount of money put into gold.
Which type is right for me?
While beginners may think of gold bars and coins as the only way to invest in the precious metal, there are a wide variety of ways to get started. Some, like gold IRAs, are relatively safe and effective for retirement planning. Others, like gold stocks and futures, however, are much riskier and require a more thorough approach. Beginners will need to understand which type is best for their experience level in advance or risk doing significant damage to their wider portfolio.
The bottom line
With inflation still a concern and a growing price, many beginner investors may be considering a turn to gold now. And while the yellow metal has a wide array of benefits, it’s critical to approach gold with a nuanced approach. That includes understanding the answers to questions about the metal’s profit-making ability, its place in a portfolio and the types to invest in (and avoid). By doing their research and building the best answers possible to these questions, beginner investors can significantly improve their chances for gold success, both now and long into the future.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
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.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
