Seniors: Is Investing in Gold a Good Idea?
As you age, you may become a little bit pickier about where you allocate your investment funds. As news about a looming recession, higher interest rates, and inflation hikes take over headlines, many people—including seniors—are wondering how to protect themselves. Whether you are young and just starting out your portfolio or a senior who is already in retirement, investing in gold is always a good idea. Keep reading to learn more about why investing in gold is always a great strategy and how seniors can get started investing in gold today.
Why Invest In Gold?
Gold is always a great investment. Whether you are young or old, investing in gold is a great plan to add to your investment strategy to protect your other investments and secure your retirement. If you are already in retirement, you want to ensure your funds are safe amid the current. inflation, rate hikes, and more. It can be scary to stumble upon uncertain economic times without the protection of gold, which allows for a few other reasons that investing in gold is always a great idea:
- Diversifying. Your eggs shouldn’t be all in one basket. Diversifying your investment portfolio will ensure that at least some of your funds are safe should one of your other investments not work out the way you planned.
- Liquid cash. Gold allows you the opportunity to take cash out whenever you need it. Gold is always in high demand and is easy to sell, and you can sell some or all of it whenever you need to. Other investments, such as real estate, are far less liquid and can take years to get your money out.
- Taxes. There are many tax benefits to investing in gold. These include higher after-tax returns, Retirement Savings Contributions Credit, and the fact that the tax amount depends on your income. This can mean different things for each and every person who invests in gold, so make sure you do your research as to your tax obligations.
- Inflation hedge. According to USNews, gold is considered a classic inflation hedge because its price tends to rise during inflationary periods, and it tends to rise as consumer prices increase. This means that your retirement portfolio will be protected, and the money that you saved when you were younger can maintain some, or all, of its value.
- Requires little-to-no experience or knowledge. Many investments require a lot of knowledge, expertise, and research. Real estate or opening a business are two examples of investments that require a lot of knowledge and professional expertise. They require a lot of time, contracts, experts to hire, and much more. With gold, all you need is a trusted dealer, and you are quickly in the game.
What the Experts Say About Seniors Investing in Gold
According to CBS News, many seniors may benefit from the diversification that gold can provide. That’s because gold has a low correlation with other assets like stocks and bonds. So, for example, if you’re concerned your portfolio is overexposed to the stock market, adding a slice of gold to your holdings may make sense. Bear in mind, however, many experts recommend allocating just 5% to 10% of your holdings to gold. For seniors, that number may be even lower.
Gold may also be a good investment for seniors as a hedge against inflation, primarily because it holds its value longer than many other assets and may even earn a profit. For example, during the 1970s, inflation soared from 5.84% in 1970 to a staggering 13.58% in 1980. But according to NASDAQ, gold prices catapulted from $35 per share to $850 per share during the same timeframe.
While gold isn’t typically a good long-term strategic investment for growth, it can outshine the stock market in periods of financial turmoil. According to GoldSilver, during the Great Recession from October 9, 2007, to October 9, 2009, the S&P 500 plunged 56.8%. But not gold. The precious metal actually increased by 25.5% during the same two-year period.
Seniors: Invest in Gold with Priority Gold
If you are a senior and are ready to invest in gold, we can help you. Securing your future doesn’t have to be done just when you’re young; you can provide protection for your retirement anytime with gold. Priority Gold is one of the most trusted precious metals dealers in the United States with a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest standards of customer service, which comes with honesty, professional conduct, and an Ethical Code of Business.
For more information, visit us at prioritygold.com