Why you should invest in gold in 2023.

The new year could be challenging economically-investing in gold may help.

It’s almost a new year and a time for reevaluation for many people. If you’re one of them, you may be taking a look at your finances-specifically, what you’re investing.

For some, gold may be a smart choice as an investment this year-and for more reasons than one. If you’re one of the many people considering this unique investment opportunity then start by requesting: Why should you invest in gold in 2023?

If you’re considering investing in gold in the new year, here are some of the benefits it may come with.

It’s a good hedge against inflation.

Gold and other precious metals have long been considered a smart way to fight inflation. That’s because it tends to hold its value and preserve your purchasing power-over the long haul, despite fluctuations in the dollar.

Looking forward to 2023, as inflation continues to run high, this might be an excellent time to increase allocations to gold. Over time, analysts have shown that gold has been a good hedge against inflation.

The Personal Consumer Expenditures index measures the prices people in the pay for goods and services. In 2022 the index ranged from 6% to 7%-well above historical norms. It was also much higher than the 2% rate the Federal Reserve has been targeting.

According to experts, the economy may not hit that mark until 2025-possibly even later, making gold an even more interesting investment to consider in the new year.

When an economy slumps into a recession, a 35% chance of happening next year the stock market does, too. Real estate investments can also lose value during a recession.

During these times, gold can be a good way to ensure a diverse portfolio, reduce your exposure to these riskier assets, and minimize the impact of any losses.

It’s more liquid.

In a recession, liquidity-or being able to offload assets for cash quickly-is key. Then, if you fall on hard economic times, you can cash in on those assets and still stay afloat on bills and other necessities.

Stocks, bonds, real estate, collectibles and other tangible assets are illiquid investments. They’re hard to turn into usable funds, particularly when demand for those items is down. Who wants to buy rare artwork when you can’t pay the bills?

Gold, on the other hand, is highly liquid and can be exchanged very quickly for cash, making it a smart investment during down periods.

Good for some, not for others.

To be clear: Gold is a smart investment for some, but it’s not the right move for everyone. If maximizing your investments’ growth is a priority, for example, then gold’s probably not for you. Gold is typically considered a low-risk, safe haven investment-not one that offers high returns.