Investing in gold is one of the hottest topics in financial circles, and the opinions of experts are often wildly different. Some say investing in gold is much safer than investing in stocks, savings accounts or cash. Some claim that owning gold is a great way to combat inflation.
Either way, the price of gold fluctuates enough that learning how to predict its movements can be extremely lucrative. That’s why we’ve provided this free guide to explaining gold investing basics.
If your goal is to consistently invest small amounts of money over time, gold might not be for you. The purpose of investing in gold is to increase diversity, retain value for financial and investment security, and to use as a “hedge” against inflation, economic crises and political unrest.
I’m a firm believer that some gold should be in everyone’s portfolio for the sake of increasing diversity and security, though putting to much into gold can be risky. Always use caution, and remember that there’s no such thing as a sure thing — even when investing in gold.
If you decide not to invest in gold, don’t forget that it’s not the only way to manage your money. You can also invest in the stock market or put your money into a high-interest savings account. Or you can put your money into a CD after you research the best CD rates.
Regardless, unless you have a huge amount of money to invest, the best financial advice you can receive is that which details how you can make money and save money more efficiently. Investing small amounts consistently is almost always a better idea than investing large amounts sporadically.
If you haven’t yet physically written out your financial plan, there’s no time like the present. Read How to Write a Financial Plan and Financial Planning 101 to learn the basics of getting a plan for your financial future.