Is gold a good investment for retirement?

Despite this emotional pull, many financial experts warn that gold (and in this case silver, an even more volatile commodity) is simply too risky, especially for retirees who need income-generating investments rather than an asset that fluctuates wildly in value over short periods of time or for years can languish. For some investors, gold is an attractive asset for retirement provision. Gold provides an additional source of diversification and is (possibly erroneously) seen as a hedge against and volatility. Buying physical gold or silver for your retirement provision may seem like an unnecessary expense, but it can save you a lot in the long run.

The benefits of buying physical precious metals for retirement are immense. It's easy to see why so many people choose to invest in these valuable pieces. Buying gold jewelry as an investment can be more difficult than buying gold bars or coins because of its measure of value, but it can still be a worthwhile investment if done correctly. In order to do so, you need a Gold Individual Retirement Account commonly referred to as a Gold Ira, although it comes with its own set of additional rules and fees to pay.

For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. Once you are 72 years old, you must accept the required minimum distributions (RMDs) from a traditional Gold IRA (but not a Roth IRA). That means if you want to use the money in these accounts to buy gold and silver, you must be able to pay at least six to eight digits as a down payment for gold and silver alone. Investment gold is usually bought by major traders, and this gives you the best chance to liquidate the gold when needed.


dollar has not been converted to gold since President Richard Nixon ended this practice in 1971. Previously, people bought gold bars to diversify their investment portfolio and protect them from inflation. For example, if you purchase a Gold Certificate, you will receive a document that states that you own that amount of gold. However, the IRS has introduced additional tax reporting and record-keeping requirements for self-directed gold IRAs due to the more complicated assets they hold. Owning gold means that you'll also need a safe to store it, insurance for the gold bars, and control the physical delivery of your investment.

For example, most 401,000 pension plans only allow direct ownership of pure gold (such as gold coins), otherwise you risk not being able to invest. These investments are available in a normal brokerage IRA, meaning you don't have to go through the work and additional costs of setting up a self-directed gold IRA. Gold IRA rules require that you store eligible precious metal with a national depository, bank, or IRS-approved trustee. Physical gold can be purchased through a number of gold and precious metals brokers who sell coins, bars, and precious metals.

During his tenure as director of the coin, Moy said there was little demand for gold IRAs as they involve a very complicated transaction that only the most stubborn investor wanted to pursue.