Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
July could be the right time to diversify your investment portfolio by adding gold bars and coins. Fractional gold has advantages over gold stocks and futures because it can be bought in small quantities, allowing investors to ease into this often-unpredictable market. That’s important for folks with limited funds who don’t want to spend over $3,000 for a single ounce. It’s also more liquid than gold stocks and can be sold efficiently if prices turn south.
Invest in Gold
The yellow metal tends to thrive in periods of economic or market uncertainty, especially when inflation is rising. This alternative, safe-haven asset traded below $500 per ounce until 2006 when it took off, lifting above $1,000 during the Great Recession. It neared $2,000 in 2011, but didn’t break that ceiling until the 2020 pandemic, and is now trading well over $3,000.
Don’t Miss:
Gold historically lacks the quick profit potential offered by stocks, bonds and real estate but it’s a good way to diversify your portfolio and hedge against inflation. And, although you might hesitate to load up after its massive bull run, CBS Moneywatch has just listed three reasons why gold bars and coins make perfect sense this July.
Stocks and bonds in 2025 are just electronic transactions on a broker’s spreadsheet. Conversely, you can hold physical gold in your hands, put it in a drawer or spirit it away in a safety deposit box. Sounds extreme but the market crash in 2008 showed how fragile the world economy can get, when banks and investment firms went bankrupt. Simply stated, gold bars and coins provide a sense of security you can’t get anywhere else.
Need to raise cash in a hurry? Gold bars and coins can be sold quickly, through online or brick-and-mortar retailers. The days of sleazy gold infomercials are fading away and there is now a reputable gold sales industry that’s trying to build trust with customers. In addition, you can independently check current spot gold prices on financial sites, under ticker symbol XAU.
Trending: BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.
Ponying up over $3,000 for one troy ounce of gold is tough or impossible for many investors. Fractional bars and coins weigh less, allowing purchases without cashing in other assets. Now, you can buy the exact amount that works with your other investments. Just keep in mind that many experts recommend keeping your gold investment allocation below 10% of assets.
Where can you buy gold bars and coins? Start with licensed online retailers who employ advanced security measures and transparent pricing models. Look for real-time spot gold prices that you can verify with other reputable sources. This venue often saves money compared to physical retailers because they have lower operating costs. Just make sure to look for authentication guarantees when picking an online retailer, to avoid scams.
Visit a local precious metals retailer if you don’t trust online purchases of fractional gold. Do your research, looking for excellent reputations and long lists of positive reviews. Compare prices, just like you would with any important purchase, and know the exact spot price before walking in the door.
Side note: Costco Wholesale (NASDAQ:COST) now sells physical gold but one ounce is the smallest purchase and there is a 2% markup on sales.
Read Next:
Image: Shutterstock
This article Tired of Stocks? Why Smart Investors Are Turning to Gold Bars and Coins This Month originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
link