Back away from the gold.
Guy Williams, president of Gulf Coast Bank and Trust, shared this bit of advice with Newell Normand of Audacy station WWL for anyone currently considering buying up some gold bars. Although gold has “historically been an excellent hedge against inflation,” according to Investopedia, Williams said now is not the time to buy the precious metal.
“Gold reached a new high in March of this year [on] March 20,” he explained. “And just want to remind the listeners, one of the worst times to buy a commodity is when it reaches a new high. It’s just almost never a good idea to get in at that point because the next trend is probably down.”
This Tuesday, CBS News reported that gold has been on the upswing and that it reached a new record high this month of $2,400 per ounce. Citing World Gold Council data, the outlet said gold prices are up 16% this year.
Williams said that some companies have been preying on people’s fears of inflation, trying to get them to buy up gold at one of the worst times to do so. One of the most heinous offenders is called Gold Co., he said.
“The reason I called them out by name is we had someone come into the bank and present their statements, and it really was appalling. And this is a company that does a lot of advertising,” said Williams. He added that the company even brought on Fox News host Sean Hannity to be their spokesperson.
Some companies charge premiums for things like unique gold coins and storage fees that could make an investment in gold an even worse prospect right now.
“So literally if you put $1,000 into gold on Monday, and on Friday you said “You know, I really don't like this idea,’ You could end up with as little as $300 or $400,” Williams warned.
According to CBS News, some experts expect gold prices to keep rising this year. Before investing their money in anything, people should research it thoroughly.