Is It Good To Invest In Gold In 2021?

Gold Investments Are On The Rise

Share Tweet Share

The world of money in 2021 is certainly not normal. We have seen incredible rises in prices of everything from real estate to food prices. However, is this the right environment to purchase gold? Investing in gold or rolling over an IRA into a gold IRA is beneficial, but first, make sure you are well-educated on all things gold. Allegiance Gold has superb executives that can educate you on the importance of adding gold into a financial portfolio. Let’s take a look at some reasons why you may want to consider investing in gold in 2021. 

Inflation Has Taken Off In 2021

For over a decade inflation has been under control. However, that has all changed in 2021. We have seen record increases in the price of rents. We have also seen some notable changes in the price of staple foods at the grocery store. In fact, the office year over years inflation rate is sitting at over 5%. This is much higher than the usual 2% year-over-year inflation rise that we have seen over the past decade. 

Usually, these rises in inflation are not a one-year event but a harbinger of a shift in the economy. It looks like the prices of many items are going up. That will include gold. Therefore, having some assets in gold can lead to some outsized gains in your portfolio. 

Stocks Are In Bubble Territory

If you have been invested in the stock market, then you have noticed that the price of equities has only gone in one direction – up. While this makes your portfolio look great, you should also express a little caution. The stock market doesn’t always move in one direction. When the stock market eventually turns downward, then it could be a pretty violent fall. 

One of the smart reasons to invest in gold is that the asset tends to be non-correlated with equities. That means that gold will tend to hold its value and even go up when stocks are down. Therefore, you may want to consider diversifying in gold to protect yourself from a possible bear market in stocks. 

There Is A Worldwide Shortage Of Many Goods and Commodities

Another unique situation in the year 2021 is the shortage of many items that we have taken for granted. For instance, there has been a big shortage of lumber due to huge construction demand. Also, we have seen shortages in rubber which has to lead to a depleting inventory of tires. Other shortages that we are experiencing include computer chips and motor vehicles. 

When you have a shortage of items, you tend to see a universal rise in the price of goods and commodities. As the king of commodities, gold is likely to rise in the year 2021. By putting some of your wealth into gold, you could see some outsized gains in your portfolio. 

Gold Is Reasonably Priced Compared To Other Assets

We have already talked about the big rise in the price of stocks. Well, that’s not the only thing that has been appreciated greatly in 2021. Real estate prices have also been on the rise. Even the price of used cars has hit a record. However, the one asset that has yet to hit new highs includes gold. 

As the saying goes, “buy low and sell high.” If you can get gold at a bargain price while everything else is hitting new highs, then you are well-positioned to make some nice gains when gold finally makes its run. 

40% of all the US dollars in existence have been printed in the last 12 months 

This may seem like a shocking and almost unbelievable fact. However, it is true that almost 40% of all the US dollars in existence have been printed in the last 12 months. This is mainly due to the trillions of dollars in stimulus that has been authorized by Congress. Well, when fiat money begins to print, a rise in the price of gold is not far behind. 

If the United States continues to print US dollars at such a breakneck pace, then a rise in the price of gold is almost inevitable. 

Securing Your Wealth With Gold 

Gold can be one of the smartest investments in 2021. If you are looking to add gold to your portfolio, then consider purchasing gold coins or gold bars from an authorized dealer. A little gold now could lead to big gains later. Have the executives at Allegiance Gold educate you on why gold can help preserve your wealth. Make sure to ask about receiving your FREE gold IRA guide that can help you understand why gold may be right for you.