Over the past few weeks, there has been a notable increase in the price of gold, which has been steadily rising over the past several months. (Photo : by Christopher Furlong/Getty Images)
Over the past few weeks, there has been a notable increase in the price of gold, which has been steadily rising over the past several months. The price of the precious metal has risen to almost $2,300 per ounce, setting new records along the way, after beginning 2023 close under $1,800.
The strong rebound in gold can be attributed to a few main factors. Resurgent inflation is one significant cause. The most recent inflation data revealed that although the rate of inflation has drastically decreased from its previous peak of 9.1%, it has increased somewhat again in March, rising to 3.5% from 3.2% in February.
Gold Bars Are The Best Investment for Newbies
Tthe Federal Reserve has hinted that it could need to maintain higher interest rates for longer in order to completely contain inflation, even though rate decreases were anticipated in the middle of 2024. However, high interest rates frequently impede economic expansion, which makes safe-haven investments like gold more appealing.
Consequently, as a hedge against these systemic risks and general economic uncertainty, investors have been pouring money into gold. The price of gold has been further supported by this increasing demand. Although the recent surge in gold prices is an enticing entry moment for regular purchasers as well as large institutional money managers, there are a few strong arguments for novice investors in particular to consider adding 1-ounce gold bars to their portfolios in May.
Here's why, if you're a novice investor, you might want to think about include this kind of gold in your portfolio right now:
Beginner investors may want to consider starting a gold position now, given the array of economic problems and risks that lie ahead, ranging from persistently high inflation and increasing interest rates to mounting geopolitical tensions and high debt levels. These adaptable 1-ounce bars can serve as a refuge and buffer against increased unpredictability, after all. Thus, this May can be a good opportunity to invest for novices who want assets that can serve as insurance for their investing portfolios.
They Are a Cost-Effective Option
One-ounce gold bars are among the most affordable options for novice investors with limited funds to have exposure to actual bullion. When comparing 1-ounce gold bars to smaller fractional coins or rounds, the premium for the real metal value is typically less per ounce. This helps novice investors avoid overpaying in comparison to the price of gold on the international market and maximize the quantity of real gold that their money may purchase.
Easy Storage and Great Divisibility
One-ounce gold bars are substantial in size but still small enough to keep safely at home with a few basic security measures. In addition, compared to bigger bars or coins, its 1-ounce weight offers great divisibility in the event that a novice investor needs to trade a part for goods or services in an emergency.
The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.
