Many investors believe gold is a safe long-term investment that can be used to hedge against risks. But should you include this precious metal in your retirement portfolio? Gold can be a highly volatile asset with an unpredictable price that is rarely correlated with stable growth. And that makes it a poor choice for the kind of reliable, long-term investments that retirement requires. Here’s what you need to know.
For example, the Internal Revenue Service (IRS) only allows 24-carat gold bars and coins to be included in gold-plated IRAs (with the exception of 22-carat American Eagle coins). One of the first and perhaps most obvious gold investment options for your retirement portfolio is physical gold. From physical gold to stocks to gold-backed assets, there are a variety of options for those who choose to use gold to prepare for retirement. You might think that investing in gold stocks is only for investors who are deeply entrenched in the stock market, but the fact is that anyone can invest in gold stocks if they’re willing to put in some work.
If you’re still convinced that gold is for you, you can invest in funds that own gold, although many gold fans, often referred to as gold bugs, prefer to buy the physical metal, although this may mean additional costs for storage and insurance.