CBS News
Are 1-ounce gold bars still a good investment with inflation falling?
When the latest inflation report was released this week, it offered good news for many Americans. After ticking back up unexpectedly in early 2024, inflation cooled again in June, falling to 3.0%, a drop of about 0.1% from the month prior. This is the third consecutive month-over-month drop and the fastest inflation has fallen since June 2023. And, with each drop in inflation, the rate inches closer to the Federal Reserve’s 2% target, meaning that the likelihood of future Fed rate cuts also increases.
But even if the Fed keeps rates steady at its next meeting, the drop in inflation will likely have a positive impact on a few areas of the economy, including the cost of essential goods like groceries and housing. It’s also a positive development for borrowers, as the Fed has for the last year kept interest rates locked at a two-decade high in an effort to curb inflation. With inflation easing, there could soon be a drop in interest rates, which would provide some much-needed relief for those who need to borrow money.
While declining inflation may be a bright spot in many ways, it could also impact certain types of investments, including gold. Gold investing has had allure for investors over the past year, due in large part to inflationary concerns and economic uncertainties. Now that inflation is on the decline, though, are gold investments — and 1-ounce gold bars in particular — still a good option?
Learn more about how the right gold investment could pay off here.
Are 1-ounce gold bars still a good investment with inflation falling?
The short answer is yes, 1-ounce gold bars could still be a good investment for the right investors, even with inflation falling. That’s because while gold tends to shine during periods of high inflation, its appeal as an investment vehicle extends well beyond its role in that capacity.
For starters, gold is an excellent tool for portfolio diversification — and a diversified portfolio is important even with inflation easing. A well-diversified portfolio is built to weather any type of financial issue and gold’s value tends to move independently of stocks and bonds, so by adding gold to your portfolio, you gain protection against losses from traditional investments due to market volatility.
And, while short-term price fluctuations can occur, gold has historically maintained its value over long periods, making it a reliable store of wealth. So, by investing in gold now, you’re likely to see the value of your gold remain stable and increase over the long term. Gold can also serve as a hedge against currency devaluation, which can remain a concern even as inflation falls.
Plus, global economic challenges are still a real issue in today’s economic environment, despite today’s improving inflation figures — making gold, and, in turn, 1-ounce gold bars, a smart bet. After all, geopolitical tensions and economic challenges that occur in other parts of the world may help to drive demand for gold as a safe-haven asset, so putting some money into this type of gold bar could pay off, even if inflation continues to improve.
And, there are other reasons to consider investing in this type of gold bar, including:
- Ongoing inflation protection: While inflation has been falling, it’s important to remember that economic conditions can change — and you’ll need access to an asset that can protect your wealth when they do. And, since gold is an inflation hedge, it can serve as long-term protection against future inflationary pressures that arise.
- Liquidity: Another big benefit to investing in this type of gold is that 1-ounce gold bars are highly liquid and easily traded.
- Reduced counterparty risk: Unlike many financial assets, physical gold doesn’t rely on any counterparty’s promise or performance, reducing certain types of risk.
Compare the gold investing options available to you online now.
Potential downsides of investing in 1-ounce gold bars
But while 1-ounce gold bars could still be a good investment for the right person, it’s important to also consider the potential drawbacks, including:
- Cost of storage and insurance: Physical gold requires secure storage and insurance, which can add to the overall cost of the investment.
- Lack of passive income: Unlike stocks that may pay dividends or bonds that provide interest, gold doesn’t generate passive income.
- Price volatility: While gold is often seen as a stable asset, its price can still be volatile in the short term.
The bottom line
While falling inflation may change the investment landscape, 1-ounce gold bars can still be a good investment. Their role as a diversifier, store of value and hedge against various economic risks remains relevant, even during times of lower inflation. As with any investment, though, it’s crucial to do thorough research, weigh your options, consider the potential downsides and determine what assets fit best in your strategy. That way, you can ensure that you’re building a well-balanced portfolio that can withstand various economic conditions.
CBS News
Trump looking to appeal to Jewish voters on campaign trail
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
FBI says Iran hackers sent Trump campaign info to Biden campaign, what to know
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Best mortgages for first-time homebuyers
Rising home prices and high mortgage rates haven’t made buying a home easy these last few years. In fact, with affordability such a challenge, it’s only made shopping around for a lender that much more important.
It’s true: Comparing lenders can make a big difference when it comes to price. According to Freddie Mac, getting just four different mortgage rate quotes can save you about $1,200 per year.
But rates aren’t the only thing you should think about when choosing a lender. Want to make sure you pick the best mortgage company for your needs? See below for some of the best lenders for first-time homebuyers currently on the market.
Lock in a low mortgage interest rate here today.
Best mortgages for first-time homebuyers
Here are the best mortgage lenders for first-time homebuyers, broken down into six categories:
Best for low down payments: Veterans United
Veterans United exclusively offers VA home loans — which means all its loans require zero down payment. Though you’re welcome to put some money down, VA loans are one of the few mortgage options with no down payment requirement.
There is a catch, though: You’ll need to be a current military member, veteran, or spouse of one to qualify. Certain service requirements must be met as well. If you can do it, though, you’ll save yourself money both upfront (on the down payment) and in the long haul, as VA loans tend to have lower interest rates than other loan options.
Learn more about Veterans United here now.
Best for good credit: US Bank
If you have decent credit, US Bank might be a good option for your mortgage. The lender offers conventional, FHA and VA loans, and its rates are some of the lowest of lenders we analyzed. You can also apply fully online and get valuable closing cost discounts if you use other US Bank services.
Best for low credit: Cardinal Financial
Cardinal Financial is a good option if your credit score is on the lower end. The lender allows for scores as low as 620 on conventional loans and 580 on FHA, VA, and USDA loans. There are also jumbo loans — if you’re buying in a high-priced market or eyeing a more expensive property — and construction loans for buyers looking to build their own homes from the ground up.
Best for no lender fees: Better.com
Most lenders charge a variety of fees for processing your mortgage. These might include an origination fee, application fee, underwriting fee, and more. With Better.com mortgages, you won’t see any of these charges. The online lender charges no lender-side fees for underwriting, servicing, or originating its mortgages. There are other typical closing costs, though.
Best for online borrowing: First Mortgage Direct
First Mortgage Direct is a fully digital mortgage lender that lets you manage your mortgage process from start to finish all on the web. You can get a rate quote online, fill out an application, submit your documentation, and even close digitally, too. The lender also offers many online resources to help you along the way — things like informative videos, calculators, articles and more.
Best overall: New American Funding
New American Funding has something for everyone: conventional loans, government-backed loans, jumbo loans, construction loans, non-QM loans and more. There are even loans with customizable terms and options that can turn you into an all-cash buyer to make you more competitive. The lender also has a 4.1-star rating with the Better Business Bureau and a 4.6-star rating on Trustpilot.
Always shop around
Whether you’re buying your first home or your fifth, shopping around for your mortgage is important. If you need help doing so, consider enlisting a mortgage broker. These professionals can shop around on your behalf, help you compare lenders and loan options and ensure you get the best rate.