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Will Gold Investing Help Me in My Retirement?

By    |   Sunday, 12 July 2015 11:15 AM

Gold investing is seen as a risky investment strategy for those entering retirement.

"Gold itself doesn't produce anything," Eric Meermann, a portfolio manager with Palisades Hudson Financial Group in Scarsdale, New York, told AARP The Magazine. "It just sits there — a form of money for people who don't trust other forms of money, like cash or investment securities."

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While many gold infomercials are directed at seniors, with a script that says U.S. currency is steadily going away, that fear tactic is hardly a reason to invest in gold, which can be volatile in terms of its value.

In recent months, gold has been described as a push and pull investment, a whipsaw for traders and investors that is occurring in anticipation of the Federal Reserve preparing to likely raise interest rates, Bloomberg noted.

While some financial advisers say it's wise to diversify an investment portfolio with some commodities, gold is not the inflation-hedge that some have suggested, MarketWatch reported.

The Street's Roger Arnold noted in a May 14 column that gold had dropped by almost 28 percent when he last wrote about its value in a 2013 column. Because of that, for some it could prove a decent value at its current price.

The bottom line for retirees is to be careful putting all their assets in one gold basket, so to speak.

"Gold is an emotional investment, and not one that I would recommend for those approaching retirement or in retirement, noted David I. Kass, an associate professor of finance at the University of Maryland, College Park, in an interview with AARP The Magazine. "The price of gold can drop as quickly as it can go up."

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Gold investing is seen as a risky investment strategy for those entering retirement.
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Sunday, 12 July 2015 11:15 AM
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