Published On: Wed, Apr 1st, 2015

Are More People Investing in Gold as a Retirement Product

The economic crash has resulted in many people becoming disillusioned with traditional investment products. Pension scandals and banking misdemeanours have seen many retirees look at alternative sources of investments. As such, many of the over fifties’ market has been investing in their future in a different kind of product: gold.

Graph With Stacks Of Coins

Gold has long been an attractive prospect for those that can afford to invest wisely. The Middle East has seen a sharp rise in investors taking on gold in their portfolio. It’s a sensible way to diversify, without having to take on huge risks.

Those who are preparing for retirement are now looking at fewer volatile ways of investing cash. With pensions facing cuts and with faith and trust being lost from the traditional financial market, it seems that gold is a way to ensure that retirees see an ROI.

Why is this the case?

High Prices

One of the many benefits of gold trading and investment is that it comes with a high price. As such, this allows retirees to invest in a product that will always remain worthy. While stock markets can plummet, the price of gold always has a high associated cost. It never sells for less than what it is worth. In the main, this ensures a safe bet for retirees. Due the nature of gold investment, it can ensure that inflation is hedged. Investing in gold means that retirees have a valuable commodity within their portfolios. What is more, they can ensure that they convert this precious metal into cash. As such, this means that gold can be turned into money that can be used during people’s retirement years.

Gold prices are not fixed by any means. But, in the latter end of 2014, gold prices went up by 18%. As such, there was a stampede by retirees and the over fifties to get this in their portfolios. For those of retirement age, they sold their gold when the hike went up.

Gold is the perfect commodity, in some respects. Precious metals rarely lose their worth. While the gold index can susceptible to dips and declines, it never quite crashes, unlike traditional financial products. According to, more retirees are using this product as a hedge against inflation. The pensions market has been under intense scrutiny in the last few years. More companies have gone into liquidation and as such, investments in pension-related products have been left open to market harm and risk.

Risk versus Benefits

Of course, gold is like any other commodity; it is left open to market risk. But, it is by no means liable to crash like traditional cash. For many retirees, they believe that this is one of the safest options that they can invest their money in. As the gold can be turned into physical money during peak investment times, it makes good financial sense to not have all of your investments in one place.

Much like real estate, gold is becoming the retiree’s investment product of choice. And, it’s easy to see why this is the case.