All That Glitters: Should You Add Gold and Silver to Your Portfolio?
Key takeaways
- Gold prices have increased roughly 20% in 2023, while silver has dipped in value slightly as part of a long-term price trend
- Investing in precious metals is considered a safe bet when the economy isn’t doing well
- A mix of ETFs, mining stocks and bullion are all decent investing options
As the economic landscape continues to look uncertain worldwide, many investors have been considering alternative assets like silver and gold to shore up against any dips in the market. Thankfully, there are many ways to add precious metals to your portfolio — let’s take a look at them.
Did you know you can use AI to invest in the gold market? Q.ai’s Gold Rush Kit is your one-stop shop for a diversified basket of gold mining companies. With the help of an AI algorithm that does the heavy lifting with the data, it finds the top performers for the week and reinvests your funds in the holdings as needed to help you build wealth.
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What’s going on with gold and silver prices?
The Fed’s aggressive monetary tightening policy in a bid to dampen high inflation has resulted in a rally for gold prices this year. The price of gold has lifted by around 20% and is currently at $1,961, having fallen back slightly once the debt-ceiling saga reached its conclusion.
Silver prices have had a rougher time of it, flagging over the last ten years. Prices have fallen 10% in the last month because of the debt-ceiling conclusion; silver is known as a more volatile market than gold, so there are chances for big swings in the price in the future.
Investing in gold and silver
A gold or silver ETF tracks the price of each metal and goes up or down with it, making it a good option for more traditional investors as it works similarly to stocks. The SDPR Gold Trust is the world’s largest gold ETF and has gained 6.59% in value since the start of the year, while the biggest silver ETF, the iShares Silver Trust, is down slightly in 2023 but has gained 5.5% over a 12-month period.
Gold and silver mining stocks are another good way to gain indirect exposure, as theoretically, as the price of these metals increases, so does the companies’ demand. Some of the bigger mining companies for both silver and gold are Newmont, Barrick Gold and Franco-Nevada, among others.
Or if you’d prefer to see what your money has bought you, you can buy gold and silver bullion — though, fair warning, you need to check the spot price against the current purchase price to ensure it’s worth it. You’ll also need to find somewhere to store the bullion (maybe a treasure chest?), and your home insurance is highly unlikely to cover it.
The bottom line
Navigating gold and silver stocks and prices can be tricky, but creating a truly diversified portfolio is worth the payoff. Luckily there are a range of options available and you can use AI investing to make the process a lot easier by tracking the changes in the market on your behalf.
Precious metals form a part of Q.ai’s Global Trends Kit, a low-risk investment option designed to catch the upside on global assets. An AI algorithm scours massive amounts of data to identify which assets are performing well, then realigns the Kit’s holdings as required to keep you on step ahead of the global stage.
Download Q.ai today for access to AI-powered investment strategies.
