NEW YORK CITY, NY / ACCESS Newswire / February 20, 2025 / Deciding on which types of investments to move forward with is not an easy task. Whether you're purchasing stocks or buying gold, you'll want to choose what's best for your long-term financial plan. Here are some pros and cons to consider as a beginner when purchasing gold for the first time.
Pros
Diversify your portfolio
Buying gold can be an excellent way to diversify your current investment portfolio. In addition to more traditional or standard stocks or bonds, gold can add another layer of value to your holdings.
Gold is also a universally recognized asset class, meaning its value is acknowledged worldwide. 1 In contrast, some company stocks may have a regional value that varies depending on your location and the specific market, making them subject to different valuation standards across markets.
Relative stability
When considering your range of investments, it is worth noting the stability of gold as an asset class. While other investments may rise and fall with the changing financial markets, gold has shown that it can appreciate even during uncertain economic times. 2
While it's important to remember that no investment is ever guaranteed to appreciate, gold's relative stability as an asset is a plus to keep in mind.
An investment you can showcase or wear
You may want to consider investing in minted gold coins or gold jewelry. Rare gold coins are wonderful to showcase to other collectors and wearing gold jewelry makes a great statement when you step out for any occasion.
And if you decide to sell your gold later on, collectibles make a fantastic impression on buyers who want to add that glamorous piece of jewelry or rare gold coin to their portfolio.
Cons
Can be expensive to keep
Depending on the type of gold you invest in, it can be an expensive asset to keep on hand. The costs of retaining gold can be higher whether you opt to keep it close to home, in a trusted financial institution, or another means of trustworthy storage.
Before you buy, consider asking your financial advisor or other reliable source about insurance costs, storage and retainment practices, and other associated costs that may come with your new asset.
Not a traditionally interest-generating investment
Gold does not generate interest like stocks, bonds, savings, and other financial accounts do, but it can appreciate its resale value. So, you may see a profit when you decide to sell some or all your gold investments.
Con: Not as simple to sell as other asset types
Much like valuable paintings or rare books, gold may not be as simple to offload as a standard stock. As a beginner investor, it's a good idea to speak to your advisor about any expectations around timeline, reselling, and otherwise adjusting your gold holdings if you choose to shift your investment strategies and sell in the future.
No matter how you decide to invest in gold, it is a great investment and one to consider when you are thinking about diversifying your overall investment portfolio.
All investments carry some level of risk, including loss of principal invested.
No investment strategy can assure a profit and does not protect against loss in declining markets.
Contact: Don Klein, 1-800-323-7033
SOURCE: Northwestern Mutual
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