Podcast Episode 325: Should I Buy Gold?
When the market gets choppy and investors start to feel uneasy, it’s not uncommon to get questions about whether it’s a good time to buy gold or silver. Over time, there are different reasons that people would give for wanting to invest in precious metals, but should you be buying gold? Eric Hogarth, CFP® joins the show to help us answer that question.
The reality is that most people who are asking this question are approaching retirement and they’re worried about making sure their money is safe. When people begin talking about a recession or there’s implied volatility in the market, investors begin to react by looking for conservative options.
People often think that when the market is doing poorly that gold does great. But that’s not true. It can be a hedge but it’s not going to protect all of your money. The real problem isn’t buying gold though. It’s buying too much of any one thing, whether that be precious metals, CDs, or any other ‘safe’ investment.
You want to make sure you have a plan and that each piece of that plan is adding value to the overall portfolio. It’s great to have options and choices with your money, but one thing is certainly guaranteed, and that is things are going to change in the future. A good plan can adapt with that change, and that’s the approach we want to take.
The underlying question beyond gold is how to make you investments more predictable and less volatile, right? That’s a natural question, especially as you reach retirement. No one wants to worry about the day-to-day movements of the market, but the approach will be different for everyone. It doesn’t matter what other people are doing. You need to have a conversation with a financial professional and get some guidance to become more educated, and you’ll feel better about where you’re headed.
In the end, it all comes down to planning and it’s vital to have an investment plan in place. There’s not a simple yes or no answer to this question about gold or any other investment option. The first step to getting help and coaching is to request our retire starter kit. Just let us know you’re interested and we’ll get it out to you.
Here’s what you can expect to learn in this episode:
• What’s the first thing Eric usually thinks when someone asks about gold?
• Why does the interest in gold usually come in waves?
• Why Eric prefers a securitized version rather than physical gold.
• How can you build an investment portfolio that reduces that volatility?
• Are annuities another good alternative to gold for a safer investment?