Gold’s price is down by more than 25%. Here’s what investors should do next.

Investors who gave up on gold in recent years certainly had a valid reason for doing so. With the price breaking milestone records multiple times, first past the $3,000 per ounce mark and then past the $4,000 and $5,000 records, gold simply became out of reach for many investors. Unless you were willing to take a dollar-cost averaging approach or wanted to get started with fractional amounts, you were largely left on the sidelines waiting for a price drop that appeared unlikely to materialize in any significant way.

Surprisingly, however, that’s exactly what has happened in recent months. After reaching its last record high just under $5,600 per ounce in January, gold has declined considerably. Priced at $4,122 on July 9, gold is down by around 26% from the $5,589.38 it was selling for at the start of the year. While that means a decline in the value of the holdings of existing investors, it also opens up new opportunities for those who have been priced out of the market this year. 

But with gold price dips rare and often temporary, prospective investors should be prepared to move quickly and strategically right now. But what, exactly, should they do next? Below, we’ll outline three critical steps to take while the price is affordable.

Start by exploring the top gold investing options available to you here.

What investors should do with gold’s price down by more than 25%

Haven’t yet got invested in gold? Here’s how to smartly take advantage of the price drop the yellow metal is experiencing right now:

Find the right type to invest in – and get started quickly

There are a multitude of gold types to invest in, from bars, coins, IRAs, ETFs and more. Not every type will be right for you or even most. Take the time, then, to evaluate each to determine which fits your investing strategy and portfolio best. But don’t overanalyze your options either. Gold’s price, historically, tends to rebound from the decline it’s currently engaged in, so it makes sense to get started relatively quickly. Analyze your options, but once you’ve found one that fits your needs, don’t delay getting invested either.

Compare your top gold IRA options online to learn more.

Remember to keep your investment amount limited

It’s understandably tempting to overinvest in any investment that’s currently selling below its price. But that should be a temptation avoided with gold, and, instead, your investment should be capped at 10% of your overall portfolio (or even below that threshold depending on your investor profile). 

Remember that gold doesn’t really generate income as much as it protects the money you already have. So your portfolio should still largely be made up of stocks, bonds, real estate and more, even with gold’s price lower now. Overinvesting could mean losing out on income-producing opportunities that alternative assets offer. In other words, add the protection gold can offer at today’s reduced price while still looking for investments that can reliably generate income.

Consult with the top gold investing companies

Gold isn’t an asset as well known as some stocks or real estate. And the industry is unfortunately known for unethical behavior and multiple investor red flags. Avoid falling victim to scams and unsavory investors, then, by speaking with the top gold investing companies now. They can help you take advantage of today’s lower price in a secure way via a tailored investing strategy that works best for you. Consider, too, the online reviews of each company, which can give you a better understanding of which ones have reputable backgrounds and satisfied customers and which ones do not. 

The bottom line

With the price of gold down considerably from a January record high, investors will want to act strategically but rapidly to take advantage before it potentially spikes again. By finding the right type to invest in, actually getting invested quickly when they do, avoiding the temptation to surpass the recommended portfolio threshold limit of 10% and evaluating their options via the top gold investing companies, investors can position themselves for success now. The emphasis should be on strategic but quick thinking, as gold’s price changes throughout the day and any changes in market conditions can easily cause it to rise again, potentially putting it back out of reach on a more permanent basis.