What investors should know
CBS News featured us in an article about investing in gold—”Investing in GOLD to meet long-term goals: What investors should know”—by Elizabeth Aldrich, edited by Matt Richardson.
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“Although a cadre of investors trade in-and-out of gold, usually it is viewed as a long-term holding and as an asset diversifier within an investment portfolio,” explains Michael Ashley Schulman, CFA and Chief Investment Officer (CIO) at Running Point Capital Advisors.
Gold is just one piece of the long-term investment strategy puzzle, but it’s a piece that can lend stability and resilience to your portfolio.
“During periods of economic uncertainty, currency devaluation, trade disputes, or global crises, investors often seek wealth protection through gold and similar assets,” explains Schulman.
For one, gold tends to hold its value in the long run, sometimes even increasing in price when currency is losing value. “Gold’s unique position as currency, commodity, and collectible, combined with its role in central bank reserves, reinforces its reputation as a store of value and potential inflation hedge,” says Schulman.
But if you prefer an active approach to investing and you’re okay with a little volatility, a small gold investment may be a worthy addition to your long-term strategy.
After all, gold has long attracted investors seeking to protect their portfolios against economic risk — and this may be especially true now. “As global uncertainties persist, gold may continue to serve as a valuable portfolio diversification tool,” says Schulman.
Be sure to watch out for red flags, which are easy to find in the precious metals market. The Commodity Futures Trading Commission website warns that doomsday pitches and high-pressure sales tactics may be a sign of fraud.
Finally, Schulman emphasizes the importance of making a plan and not reacting impulsively to fluctuations in the price of gold. “Like with many investments, it helps to have patience, a sturdy constitution, and a solid financial roadmap.”
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Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-25-53
