6 reasons beginner investors should add gold to their portfolios

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6 reasons beginner investors should add gold to their portfolios
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Many seasoned investors add gold to their portfolios because of its unique benefits — and new investors should, too.

The value of gold often moves in a different direction compared to other investments, which can help

and mitigate losses from other investments, like stocks, during market downturns. By adding gold to your investment portfolio, you can help reduce overall risk by providing a counterbalance to traditional assets, like stocks and bonds. of their portfolios. However, you can determine what makes sense for you based on your risk tolerance and diversification strategy.Right now, inflation is at 3.2% — and it's eroding the purchasing power of traditional currency.

As the demand for this precious metal continues to rise, the value of gold may increase, potentially benefiting investors who hold it in their portfolios. And, it's a great time to buy it, because gold prices are down toGold is also considered a. What that means is that during times of geopolitical uncertainty, economic instability or market volatility, investors tend to flock to gold as a refuge.

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