For a lay person like me who lives paycheck to paycheck with little money tucked away in a savings account, I often wonder what all the hap is about investing in gold and if gold is a good investment for me or anyone else. I wanted to research the subject of gold investments and learn what I could.
Understanding the Language of Investors
While researching the subject of gold investments, I came across a few words used in the investment industry, and I needed to know what they meant if I were to understand this industry.
To understand the language of investment brokers, I needed to learn the meaning of one essential word, "bullish."
Bullish refers to being long or buying as a bullish action. Investors relate to bullish as a belief that an asset such as gold will rise in value.
When someone is bullish, it can mean their opinion or their action on an asset, and in their view, the value of that asset will rise. Bullish can refer to one specific view on a single asset or a bullish opinion or action on an overall market, such as where the value of gold will rise in 2023.
If I hire a professional broker, I may hear them say, "I am long or bullish on a gold asset." Either way, this broker believes that prices will rise in gold.
If I were to invest in a bull market such as gold, would it mean that gold prices are rising? The answer is yes.
The uptrend relates to a bull market showing rising and sustained prices in gold over a few months or years.
- This word can mean the total amount of money in circulation.
- It can mean the total amount of money in commercial bank deposits in its reserves.
- A monetary base does not refer to other non-currency money types in circulation.
Helping Individuals Understand: Is Gold a Good Investment in 2023?
I know little about the world that investors live in, but I frequently see commercials on television about investing in gold, and the same questions keep arising in my mind. I invested my last $500.00 through a broker when I was much younger. He split this money up into a couple of different stocks. It was not even a year, and this broker lost all my investment. I never considered doing this again and stayed away from anything that had anything to do with investments until now.
My questions are always the same.
- Who can afford gold these days and in this economy when so many families must weigh whether they buy food for their table or gas for their car?
- So many folks are suffering financially in this economy, and even if I had the money now to buy gold, my question is always, who would buy it from me?
- Why invest in gold? What is the purpose?
- What is the reasoning behind this push?
My common sense says that only a select few people have the funds to invest in gold. The rest of the populace is struggling and undoubtedly has the same questions.
Consequently, I need help understanding the necessity of buying gold, and hopefully, what I discover can help inform many uninformed people like me.
I want answers to the questions posed above and to find out if investing in gold makes any sense for me and others with the same questions. Is this a financial goal I should consider?
What are the Benefits of Gold Investments in 2023?
According to an article this year by CBS News, gold remains one of the oldest, most robust, and most stable investments people can make, compared to the U.S. dollar and stocks that can lose their value quickly depending on the economy.
Bonds are what they are; they remain the same as you paid for them. However, bonds create interest and dividends. This is how you make money. You can lose what you gain from your bonds; however, you never lose the face value of the bond.
It may take the expertise of an investment advisor to help many people fully understand the benefits of investing in gold. Gold investment is not always physical gold, as I once thought. I can invest in shares of stock tracking gold prices.
Benefits of Investing in Gold
- Low volatility (its value does not fluctuate)
- The value of gold remains stable, and it shows little decrease, making it a safer place to put hard-earned money.
- Periods of inflation do not decrease the value of gold significantly. Gold is a great hiding place to keep my money stable.
- During periods of inflation, stock values fall. The value of gold remains the same as it was yesterday, today, and in the future. (However, the value of gold could increase.
- From 2023 to 2028, gold prices are expected to rise.
- After thousands of years, gold remains a form of currency that never loses its value, like the stock market or common currency.
- Through my research, I discovered that if I needed to sell my gold, many buyers would always be willing to pay me what I paid.
The professionals say that gold is an easy sale. Along with others I spoke with, my belief was if I were to invest in gold and I needed to cash it in, who would buy it from me, and I would never be able to sell it. This was an incorrect assumption on my part.
Professional investors claim many are ready to purchase gold from those who want to sell it. Selling gold is no problem.
How Do I Buy Gold?
When I saw the T.V. commercials depicting the buying of gold, I thought they meant gold bars. While investors can buy gold coins and bullion, this is not the usual way gold is bought.
From what I am learning, an investor can be anyone. If I have the money, I can become an investor in gold. An investor can be your everyday worker. Starting out, I do not need an exuberant amount of money to be an investor.
In 2023, everyday people like me have the choice of putting hard-earned dollars in a savings account or stashing my dollars somewhere until I have enough to start buying gold.
When I do this, my money is at risk of losing its value in my savings account, but not if I buy gold. So, I am better off buying gold in what is left of 2022 before the prices start to rise in 2023.
If I want to invest in gold, I should buy GLD, an ETF tracking the gold index. Professional investors recommend buying shares of GLD rather than physical gold, as I once thought. Investing in GLD sells easier and quicker than selling gold coins, pieces of gold, and gold bullion. In addition, shares of GLD do not require me to worry about where to store physical gold safely.
I discovered that those with an IRA could buy GLD and receive all the tax benefits the IRA provides. But on the other hand, professional investors of gold say that I should buy shares of GLD or physical gold through a trusted broker. The broker I used so many years ago was not good, and this happens to many unsuspecting people. So far, what I am finding is beginning to make more sense.
How are Professionals Able to Anticipate Future Gold Prices for 2023?
Investors keep their eyes on a few indicators to predict where the price of gold will rise in 2023 and beyond. These vital indicators include the following, and there is much to learn.
- The continued rise in inflation
- Bond yields
- The Euro
Q. How is the Future Looking for Those Who Want to Invest in Gold in 2023?
According to Investing Haven, many anticipate that the value of gold will rise over $2,000 upwards to $3,000 per ounce. However, these increases in the value of gold will probably start to rise in 2023 but will not reach all-time highs in 2023. This expected rise will take a few more years.
Investors claim that it will take a few more years for the value of gold to reach an all-time high. In addition, investors expect our inflation level to continue to rise during 2023. I can only imagine things becoming even more expensive than they are in 2022.
The information I find tells me that the gas price to fill my car or buy food will be much more expensive in the coming year or years after 2022. People will suffer so much more financially during 2023.
Because of this inflation forecast, the value of gold will remain stable while the dollar, stocks, and bonds will decrease significantly in value. The continued inflation trends for 2023 show gold prices stabilizing with a gradual increase in price and peaking in price in mid-2023.
An increase in gold prices is where the word bullish comes into play. According to InvestingHaven, the belief is that gold's trend is long-term bullish. Gold will rise in price because any bull market like gold slowly grows in price over time.
2023 is only the start of seeing gold prices rise. However, in five years or less and at least by 2028, gold is expected to reach an all-time high of at least $3,000 per ounce.
Looking back one year to 2021, investors predicted several spikes in gold prices, and by the end of 2022, gold prices should reach $2,000 an ounce. The current inflation does not seem to affect gold prices, and its price continues to rise gradually but steadily.
Predictions for 2023 by investors are that the monetary base will be broad and flat at the end of 2022, with an expected rise in 2023. Investors expect gold to catch up during 2023.
Is Gold a Good Investment in 2023?
Financial gurus expect inflation to be an uptrend during 2023, with the U.S. dollar having more downside than upside. Gold indicators point to prices stabilizing and a gradual price increase during 2023, with a possible value of $2,000 per ounce in 2023, with a peak in mid-2023.
However, in the later part of 2022, gold prices fell slightly, averaging a bit over $1,700 an ounce from where they were in the first part of 2022 at nearly $2,100 per ounce. This slight decline is due to higher interest rates and increased inflation during 2022.
From all I am reading about individuals investing in gold in 2023, it is always a good investment because gold loses little value and remains an excellent way of hiding your money. There is no other form of investment of money that carries no risk of loss, such as savings accounts and the stock market in a stable or unstable economy.
From all that I am reading, gold and silver are excellent investments, with silver having a possible edge over gold going into 2023.
You can also read:
Written by Allen Lee
Read more posts by Allen Lee