When the stock market goes haywire, gold often becomes the “gold” standard in the eyes of everyday investors.
True to form, gold is coming off its best week since 2016, as fears around the global spread of the coronavirus led to a sharp selloff in the stock market and nudged investors to retreat to what they perceived as a safe haven.
Gold prices are trading at their highest levels since 2013.
However, investors should resist the urge to park money in gold, financial advisors say.
While some advisors advocate allocating a sliver of an investment portfolio to gold, investors should wait until the dust settles from the recent market rout to buy, they said.
“The time to do it, at the very latest, was probably two weeks ago,” said certified financial planner Dennis Nolte, a financial advisor at Seacoast Bank in Winter Park, Florida. “Now is not the time to initiate any new positions in anything that’s gone up so fast.”