With inflation still stubborn and a recession likely to arrive in 2023, many people are keeping a close eye on their savings and investment accounts.
With trillions of ringgit lost in retirement savings this year, some investors may be considering other ways to save and make money. During such times, many have traditionally turned to gold. Whether purchased in physical form, such as gold bars, or through a gold IRA, this unique form of investment can be beneficial in many ways.
With that said, as with any financial investment, there is a better time to invest in gold than any other investment.
Gold has value at different times in your life. However, if you’re looking for the greatest return on your investment – and the greatest financial security – it’s usually best to act during one of these three time periods
1# Early January
2# When inflation is high
3# When looking to diversify your portfolio
If you think you can benefit from gold, then prepare to invest in early January.
Precious metals dealers and service companies have previously stated that the best month to invest in the metal is early January, followed by March and early April.
Other potentially beneficial times of the year include June and early July. This is based on an analysis of the average daily performance of gold from 1975 to 2022.
Typically, gold is cheapest after the New Year holiday.
So if you want to get in on the lows before prices rise, start investing in one of the top gold companies now.
When inflation is high
Gold has traditionally been considered a “keeper” against inflation. With inflation rising to 7.7% in October compared to the previous year, it may make sense to act now.
Over time, as the purchasing power of fiat money declines, the value of gold tends to rise because, unlike paper money or other types of investments, gold is a physical asset that can be stored and traded. As long as people continue to view it as a valuable commodity, the price of gold is likely to continue to be a good hedge against inflation.
When looking to diversify your portfolio
Investment returns this year have been largely below average. As investors rack their brains for potential alternatives to their current investments, turning to gold can help diversify their portfolios.
Even a small amount of gold (think 5%) can help offset losses, or at least add stability to what has been an unpredictable year so far.
Gold can be a profitable investment, especially in times of economic instability. While it is not seen as a guarantee, it can help stem the losses suffered by the market this year and may provide an increase in value in the new year.