How (and when) seniors should invest in gold
December is a good time to assess your investments and plan ahead for the new year. If the market or your financial situation has changed, you may even consider reallocating your investments or investing in new assets, like gold or silver.
For seniors, gold can be a particularly wise investment when purchased at the right time. Below we will discuss why that is and how to go about your gold investment successfully.
If you think gold may make sense for you then start by requesting a free wealth protection kit to learn more about this unique investment opportunity.
How can seniors benefit from investing in gold?
Gold investments have several benefits for senior citizens. For one, gold's value tends to hold steady over time, making it a good hedge against inflation.
It's also a smart way to ensure a diverse portfolio and spread out your investments. This reduces the risk you're exposed to and protects you in case the value of other assets you hold — like stocks and bonds, for example — starts to drop.
When should seniors invest in gold?
The best times to invest in gold are typically when inflation is high, a recession is looming or other economic troubles are afoot.
During times of economic uncertainty, investors tend to flock toward gold and other precious metals investments for their safety. This drives the value of gold upward, making it even more valuable for those who already own it. Between 1970 and 1980, for example, inflation jumped from 5.84% to 13.58%, and gold became a popular investment. Over the same period, its value increased from $35 per ounce to $850 — a 2329% increase in just 10 years.
Early in the year can also be a smart time to buy gold. According to an analysis from GoldSilver, gold prices tend to be lowest in January, March and April.
So, if you're looking to invest in gold, this is the best time of year to act. Start by requesting a free wealth protection kit from Goldco now!
Ways to invest in gold
There are many ways to invest in gold. Buying physical gold — as in bars, coins and buillon — is one option. Just make sure you purchase from a reputable dealer and that you have a safe place to store it.
You can also purchase gold stocks and securities, like mutual funds and exchange-traded funds (ETFs), or invest in gold futures (if you're a more seasoned investor).
Finally, you can open a gold IRA — a type of retirement account you can fund and then use to purchase physical gold, silver and other IRS-approved commodities.
Gold isn't for everyone
Gold can sometimes be a smart investment, but it's not right for every senior. If you're looking for high growth, for example, you may want to explore other options. Though gold does increase in value sometimes, it's not one that typically delivers a long-term return on your investment.
If you do opt for a gold investment, allocate no more than 5 to 10% of your portfolio to it, and consider consulting a financial adviser or investment professional first. They can help you choose the best gold investment strategy for your goals.
