Many Americans are considering investments that can help them hedge against any potential changes to market conditions.
With a presidential transition on the horizon, the U.S. is facing heightened economic uncertainty as we move into 2025. As a result, many Americans are considering investments that can help them hedge against any potential changes to market conditions. Though it may not be the first thing that comes to mind, gold is actually one of the most stable assets you can add to a diversified portfolio, as its value remains relatively stable against economic headwinds like inflation, dollar devaluation, and lower interest rates.
Historically, gold and precious metal assets have demonstrated resilience during economic downturns and political shifts. Take the 2008 financial crisis, for example. While the value of stocks and other financial assets plummeted, gold prices surged as investors sought out more resilient and stable assets amidst widespread economic instability. We saw a similar trend during the oil and energy crises of the 1970s. Amidst skyrocketing inflation and economic stagnation–and even Nixon’s elimination of “the gold standard” in monetary policy–the value of gold still increased, solidifying its reputation as a safeguard against inflation and political volatility.
While an economic downturn is not necessarily a near-term inevitability, uncertainty alone is cause enough for investors to rebalance their portfolios, and gold can be an ideal addition for those who are especially risk-averse.
There are many ways to invest in gold, so we’ve listed some of the most popular gold assets and investments to help you decide which is right for you.
Gold Bars
Gold bars offer a tangible way to invest in gold, as they have intrinsic value and are widely recognized. For those who value physical assets, gold bars can be a great choice because they are not tied to financial market fluctuations. It’s worth noting that gold bars do require secure storage, so investors should consider additional insurance and maintenance costs associated with this type of gold asset. Liquidity is another factor to keep in mind, as purity verification may be required when reselling.
