Should You Add Gold to Your Investment? Here’s Why It Might Be a Good Idea

Oct 23, 2024 2:49 am

Hey ,


With interest rates dropping, now could be a great time to think about new ways to grow your money.


One option you might want to consider is adding gold to your portfolio. Gold has always been a valuable asset that can protect your money during tough times.


It often does well when inflation is high or the economy is uncertain.


There are several things that affect gold prices, like:


  • The strength of the US dollar
  • Interest rates
  • Inflation
  • Political and economic problems around the world


Gold vs. Stocks Over Time


Take a look at the chart below. It shows how the S&P 500 stock index has performed against gold since the 1970s:


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In the 1970s, gold did better than stocks for about 9 years.


From the 1980s to the 1990s, stocks did better than gold for 20 years.


Then, from 2000 to 2011, gold outperformed stocks again for 11 years.


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Since 1971, gold has earned about 7.98% per year on average, which is close to the 8.01% yearly return of other commodities.


Unlike stocks, gold’s value doesn’t rely on how well a company or country is doing, making it a strong option to protect your money from inflation.


Interested in Adding Gold to Your Investments?


Here are some easy ways to invest in gold without buying physical gold:


  • Gold ETFs: These are like stocks that let you invest in gold without actually holding it yourself.


  • Gold-focused Funds: These funds invest in companies that mine gold and other precious metals, so you get exposure to gold through the companies’ success.


If you’re curious about adding gold to your investments, let me know and we can chat more about it.


Best Regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory


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