The White House announced on Wednesday that a ninety-day pause on reciprocal tariffs would be implemented for countries that had not retaliated against the US. Imports from China, however, will not be spared, with the tariff rate increasing to 125 percent. This news has sent markets surging upward, with investors breathing a sigh of relief—at least for now.
Nevertheless, the tumble in stock prices on Wall Street over the last week has led investors to look for new places to put their money, and gold appears to be an increasingly attractive option. During times of volatility in the equities market, investors turn to physical assets and treasuries, which tend to be safer places to store cash during uncertainty.
Over the last six months, the value of gold, silver, and platinum has increased by more than 2.5 percent, according to Trading Economics. But are these commodities safe investments as the tariff whiplash plays out in financial markets? After the White House announced that it would implement a 90-day pause, all three of these metals saw their price rise, with gold reaching $3,091 for an ounce.
First and foremost, this should not be considered investing advice. Instead, these are a few points to keep in mind when deciding whether gold makes sense for your portfolio at this time.
Leaders in gold trading argue that these are safe investments. The Gold Bullion Company describes the metal as “the default safe-haven to protect wealth against the threats of inflation, depreciation and currency fluctuations.” Unsurprisingly, those who stand to gain are encouraged to buy the product they sell, and thus potential investors who are unfamiliar with the metal’s market characteristics should be cautious.
Always do your research
Also, ever heard the mantra, “Buy low, sell high”? Buying right now would violate that rule, but it could be seen as a worthy violation if the price could continue to increase, or if the investor plans to hold onto the asset for many years. Those interested should consider what gains are realistic given the current economic conditions. Economic uncertainty could continue to push up the price, but that is never a given.
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