Is gold a good retirement investment?

Gold offers reliable returns, relatively low risk and protection from inflation.

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Planning for your retirement is one of the most important financial decisions you’ll ever make. At the least, you want to ensure you have enough to meet your basic living expenses. But ideally, you’ll also have some money left over to enjoy your hard-earned time off. Investing smartly can help you achieve both of these goals.

Gold has long been considered a wise investment for its reliable returns and relatively low risk. But does it have a place in your retirement strategy? Learn more about gold investing by requesting a free information kit here.

Is gold a good retirement investment?

Gold offers many benefits for your investment portfolio. Here’s how it can help with your retirement plan.

It protects your purchasing power from inflation

One of the main benefits of investing in gold is that it provides a hedge against inflation. When inflation rises, the cost of goods and services goes up and the value of your money goes down. In other words, your dollar doesn’t go as far as it used to.

Social Security doesn’t always keep pace with inflation. If you’re counting on a cost-of-living adjustment to preserve your purchasing power, you could find yourself in a tight spot.

Fortunately, gold tends to be worth more when inflation rises. It’s been considered a store of value for thousands of years, and unlike paper currency, it can’t be devalued by overproduction. So, when inflation is high, investors turn to gold, driving up the price of this finite resource.

As a result, including gold in your portfolio can protect your wealth from the erosion of purchasing power during inflationary periods. 

It provides security

Your retirement isn’t something to take chances with. Gold can protect your nest egg from market turbulence by offering reliable, steady returns despite temporary price fluctuations.

Generally speaking, gold prices have held steady over time. Gold has proven its ability to ride out everything from stock market crashes to recessions. In fact, tough times are when gold often performs best as investors turn to more conservative assets to protect their wealth.

Investing for your retirement is a long game. And when it comes to long-term investments, gold is a solid bet. This makes it a great way to weather any financial storms that may occur between now and the time you retire.

Get a free investment guide online today to learn how you can incorporate gold into your retirement plans.

It safeguards your portfolio from losses

As the saying goes, “Don’t put all your eggs in one basket.” Some assets, such as stocks, have the potential for big returns but also big losses. The best way to ensure your investment dollars are safe is to diversify your portfolio with a mix of assets with varying levels of risk and return. This way, if one asset underperforms, you won’t lose everything.

Gold has a low correlation with other assets, meaning it often performs well when other assets perform poorly. This makes it a valuable tool to protect your portfolio from losses. Experts recommend keeping 5% to 10% of your investments in gold for just this reason.

The bottom line

No single investment type can guarantee you a successful retirement, so investing in gold should be part of a broader investment strategy. Take the time to understand all pros and cons before investing in gold — or any other asset — and consider your investment goals and risk tolerance to create the best plan for your needs. When in doubt, an investment professional can help you develop a customized plan.