Retirement: Is investing in gold a good idea in 2022?

Now is the time! The day you’ve been longing for, but perhaps not so certain around. The desk could be clear and everyone is admiring the displayed gold watch in its smart box. You could even see your retirement savings might be the biggest sum of money you have seen in your life. It is a good feeling but can also be scary one. Now more than any time you need great investment guidance. Even in being careful, you face monetary dangers when it’s retire time.

The Main Dangers:

  • Longevity: the danger of outliving your assets is  real.
  • Inflation: the inexorable price-rise in products and services will eat up the purchasing power of your hard-earned savings.
  • Asset allocation: if you don’t choose the right assortment of investments, your portfolio could fail to grow.
  • Health care expense: it’s necessary to have a reliable source of money to cover climbing health care costs.
  • Withdrawal rate: if you pull out too much too soon, you’re in trouble.

To be Stable In Your Retirement Investing:

  • Diversify
  • Safety Is Most Important
  • Build Continued Growth.

Keeping this in mind have you thought about investing in gold?

  • 1) DIVERSIFICATION No matter if your method of investing is conservative, or aggressive, gold investing can play a central role in diversifying your portfolio. The majority of professionals suggest a gold allocation of 5%-10%.
  • 2) SAFETY As we agonizingly learned from the NASDAQ bust, any stock, no matter how seductive it may appear, always has the chance to plunge to 0. That will never crop up with gold. Life is full of unpredictable events-hurricanes, tornadoes, terrorist attacks. Gold investing is the perfect way to defend the foundation of your portfolio from a volatile future.
  • 3) GROWTH Of late, a long-term reader of a financial newsletter wrote: “I’ve been reading your suggestions about gold since December of 2001 and have made a boatload of money. The 10 gold stocks you now suggest, if held since then, are up around 500% on average. Not too shabby while the gold spot price is up about 70%, a 7:1  ratio.”

At this time, global gold demand outpaces global gold supply by 60%-100% annually; as gold can not be extracted from the mines quickly enough to meet the demand. A shortage leads to higher prices. No One can promise that anything will go on forever, but in the short-term the price of gold will increase.

So what shape could your gold investments be in?

Just like you should diversify your general portfolio, you can also diversify the gold part of it. Gold investing takes three main forms:

  • 1. Keeping physical gold-the safest, “insurance” part of it. And the most exhilarating part? When you grip gold in your hand for the first time, you appreciate why it has generated such enthusiasm through the ages!
  • 2. Gold stock-investment in quality gold mines. This is for the “growth” segment of your portfolio.
  • 3. Gold derivatives – these are only for those who are not risk-averse!

Some people might give you a weird look if you’re talking of gold investing! There are good ideas floating around:

Gold gives no return. But it doesn’t need to – it keeps going up in value!
Central banks will sell off their gold. They have before and have recently realized it isn’t a wise policy.
The government could confiscate gold. It’s true that this happened in 1933. But circumstances have changed so much since then; the chances of this today are almost nil.

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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