Tags: Retirement | retirement | gold

Is Gold My Best Retirement Bet?

By    |   Saturday, 13 June 2015 01:56 PM

Gold may sound like a sure thing. It's been dubbed a safety net or hedge for investors in the event world events cause a quick devaluation of currency. But investing in gold as a retirement strategy is not your best bet, experts say, calling it a better roll for those investors who are in for the long haul.

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"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."

Other analysts describe gold as risky and volatile.

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

Robert Powell, editor of Retirement Weekly for MarketWatch, urges retirees not to fixate on gold. He notes that analysts warn that no more than 10 percent of a portfolio should be invested in commodities.

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“Investors have to remember that commodities are all similar in that there is no way to put a valuation to any of them, including gold," Dave Stepherson, chief investment officer of Hardesty Capital Management, told MarketWatch.

Those buying gold should follow the economy, experts add, noting gold's tie to the value of the dollar. While some investors buy gold coins and bullion, others feel safer owning low-stakes exchange traded funds (ETFs), which are tied to gold funds in the market. Owning a few shares is easy.

"As the dollar has strengthened, the price of gold has fallen. Should the dollar reverse course or even collapse due to domestic or global turmoil and instability, many investors would likely flee to gold, which would increase the demand and subsequently the price. Gold has historically been perceived as a safe-haven asset as it is held by central banks around the world," wrote the Daily Finance's Laurie Itkin.

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Gold may sound like a sure thing. It's been dubbed a safety net or hedge for investors in the event world events cause a quick devaluation of currency. But investing in gold as a retirement strategy is not your best bet, experts say.
retirement, gold
415
2015-56-13
Saturday, 13 June 2015 01:56 PM
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