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4 expert-backed gold investing tips all seniors should know
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Over the last few years, persistent inflation has caused the price of everything from homes to food to increase drastically. This, in turn, has put a strain on many households’ budgets, as these higher costs can have a big impact on how far your budget will stretch.
That’s one reason why some seniors and older adults may be thinking about investing in gold. After all, gold can act as both a safe-haven asset and a hedge against inflation, both of which are important benefits in today’s economic climate. And, the price of gold also hit a new record high recently, climbing to $2,472.46 per ounce, helping to stir up even more interest from investors.
While gold’s value has somewhat moderated in the time since — the price of gold is $2,421.42 per ounce as of July 31, 2024 — it remains high compared to last year’s prices. So, many seniors may be wondering whether to buy gold now to take advantage of what this type of investing can offer. Before you add gold to your retirement plans, though, it’s important to consider these expert-backed tips.
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4 expert-backed gold investing tips all seniors should know
If you want to become a successful gold investor as a senior, here’s what to focus on, according to the experts we interviewed.
Purchase gold from a reputable dealer
One major factor to consider is the need to research any company you’re considering before buying gold. Scams can happen when buying gold — and counterfeit gold products can be an issue — so it’s important to make sure that you’re buying it from a reputable gold dealer.
Peter Thomas, chairman at precious metals dealer Ausecure, says seniors should look to buy from a well-established dealer that has been in business for at least 10 years. Choosing a firm that has been in business this long increases your chances of successfully receiving [authentic] yellow metal, Thomas says.
Another reason to do your research, says Hanna Horvath, a certified financial planner, is that there are many scams around investing in gold.
“Seniors should be cautious — especially if someone is promising unrealistic returns,” Horvath says.
After all, unrealistic promises could be a sign that a gold investment opportunity is a scam.
Find out how the right gold investment could boost your retirement portfolio today.
Limit gold to 10% or less of your portfolio’s value
While investing in gold as a senior can be beneficial as it can provide a hedge against inflation and help diversify your portfolio, experts say you should only invest a small percentage of your portfolio in this asset. That’s because other types of investment assets can provide more consistent income for retirement, especially compared to gold.
Horvath recommends limiting gold investments to no more than 5% to 10% of your portfolio. After all, gold can be volatile, Horvath says, and it isn’t income-producing in the traditional sense.
As a result, gold shouldn’t be the main investment for seniors who often need stable, income-producing investments like bonds or dividend stocks, according to Horvath.
Understand your liquidity needs
Before investing in gold as a senior, you should be sure to understand your liquidity needs, experts say. After all, some types of gold investments are more liquid than others, meaning you can sell them for cash more quickly than the other gold assets.
For example, if you want to sell your gold investment quickly, a gold exchange-traded fund (ETF) or a gold mutual fund can provide more liquidity than investing in physical gold, such as a 1-ounce gold bar, says Horvath.
“For many seniors, a low-cost gold ETF may be the most cost-effective option — it’s easy to buy and sell,” Horvath says.
Know the potential drawbacks
Before investing in gold, experts say you should make sure to understand the potential risks, such as the possibility of losing money.
“There are countless advertisements geared towards seniors that tout gold being a safe investment,” says Melody Brady, certified financial planner and founder and principal financial planner at Beechmont Financial. However, gold, like any other investment, has risks, Brady says.
“Gold prices can fluctuate significantly,” says Horvath. And while gold can be a hedge against inflation, Horvath says it doesn’t always perform this role reliably in the short term.
“Gold is often thought of as a hedge against inflation, but it’s not a direct hedge,” says Bryan Minogue, certified financial planner, chartered financial analyst and founder of Kardinal Financial.
“When inflation surged over 9% in 2022, gold was flat on the year. Over the long run, gold may work as a store of value, but there is no guarantee that the price of gold will match inflation in any given year or month,” Minogue adds.
The bottom line
Adding gold to your retirement accounts could be a smart move as a senior. After all, it can help preserve your wealth, resulting in it stretching further during retirement. But before you add gold to your portfolio, experts recommend contacting a financial advisor to make sure it fits within your overall financial plan. And, if you decide to purchase gold, only invest a small percentage of your retirement portfolio in this asset. “Gold should be part of a diversified portfolio that includes stocks, bonds and other assets,” says Horvath.
TRENTON, N.J. — Democratic Newark City Council President LaMonica McIver has defeated Republican small businessman Carmen Bucco in a contest in New Jersey’s 10th Congressional District that opened up because of the death of Rep. Donald Payne Jr. in April.
McIver will serve out the remainder of Payne’s term, which ends in January. She and Bucco will face a rematch on the November ballot for the full term.
McIver said in a statement Wednesday that she stands on the “shoulders of giants,” naming Payne as chief among them.
She cast ahead to the November election, saying the right to make reproductive health choices was on the ballot as well as whether the economy should benefit the wealthy or “hard working Americans.”
“I will fight because the purpose of politics and the purpose of our vote is to give the people of our communities and our nation a bold voice,” she said.
Bucco congratulated McIver on the victory in a statement but said he’s looking forward to the rematch in November.
“I am not going anywhere,” he said in an email. “We still have a second chance to make district 10 great again!”
Who are LaMonica McIver and Carmen Bucco?
McIver emerged as the Democratic candidate in a crowded field in the July special election. A member of the city council of New Jersey’s biggest city since 2018, she also worked for Montclair Public Schools as a personnel director and plans to focus on affordability, infrastructure, abortion rights and “protecting our democracy,” she told The Associated Press earlier this summer.
Bucco describes himself on his campaign website as a small-business owner influenced by his upbringing in the foster system. He lists support for law enforcement and ending corruption as top issues.
The 10th District lies in a heavily Democratic and majority-Black region of northern New Jersey. Republicans are outnumbered by more than 6 to 1.
It’s been a volatile year for Democrats in New Jersey, where the party dominates state government and the congressional delegation.
Among the developments were the conviction on federal bribery charges of U.S. Sen. Bob Menendez, who has denied the charges, and the demise of the so-called county party line — a system in which local political leaders give their preferred candidates favorable position on the primary ballot.
Democratic Rep. Andy Kim, who’s running for Menendez’s seat, and other Democrats brought a federal lawsuit challenging the practice as part of his campaign to oust Menendez, who has resigned since his conviction.
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Sean “Diddy” Combs at same Brooklyn detention center that held R. Kelly, Sam Bankman-Fried, other high-profile inmates
A second judge refused to grant bail to Sean “Diddy” Combs on Wednesday and he could remain in federal custody at a Brooklyn detention center until his trial for sex trafficking charges. Combs joins other high-profile inmates, such as singer R. Kelly, fallen cryptocurrency mogul Sam Bankman-Fried, rapper Ja Rule —even Al Sharpton served a brief stint— who were held at the same federal detention center.
Notorious for its horrible conditions —inmates won a $10 million class action settlement after enduring frigid conditions during an 8-day blackout in 2019— the waterfront industrial complex, MDC Brooklyn, houses 1,200 inmates.
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Violence and corruption have long plagued the facility; U.S. District Judge Gary R. Brown of the Eastern District of New York wrote the detention center had “dangerous, barbaric conditions” in a recent sentencing opinion. Two inmates were stabbed to death in recent months and several correction officers have been convicted for smuggling contraband and accepting bribes.
Combs joins a list of high-profile personalities that have landed at the MDC Brooklyn, partly because the city’s other federal detention center, MDC New York, closed in 2021, also due to horrible conditions. The disgraced financier Jeffrey Epstein died by suicide in his cell there in 2019. “Numerous and serious” instances of misconduct among corrections staff gave Epstein the opportunity to kill himself, a subsequent federal watchdog investigation found.
Kelly sued the federal detention center in 2022 for wrongly putting him on suicide watch after his sentencing. Kelly sought $100 million because he said the detention center knew he wasn’t suicidal after he was convicted in 2021 for racketeering and violating the Mann Act, which bars transporting people across state lines for prostitution.
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Former crypto billionaire Bankman-Fried survived on bread, water and sometimes peanut butter when he was in the MDC Brooklyn, his attorney said, because the detention center continued to serve him a “flesh diet” despite requests for vegan dishes.
Ja Rule stayed at the MDC Brooklyn for a brief time before being released after serving most of his two-year sentence for illegal gun possession. Most of his prison time was spent in a state prison in New York.
Sharpton served a 90-day sentence in 2001 and went on a hunger strike for protesting the U.S. Navy bombing of the island of Vieques, in Puerto Rico.
Combs was taken into custody on Monday and according to an indictment unsealed Tuesday he was charged with sex trafficking, racketeering conspiracy and transportation to engage in prostitution.
His attorney Marc Agnifilo told CBS News, “It’s impossible to prepare for a trial from where he is,” after a first federal judge denied Combs bail on Tuesday.
U.S. Magistrate Judge Robyn Tarnofsky agreed with prosecutors who argued the hip-hop mogul, who is accused of using his business empire as a criminal enterprise to conceal his alleged abuse of women, is a flight risk and poses an ongoing threat to the safety of the community.
Agnifilo said the part of the detention center where Combs is being held is “a very difficult place to be.”
contributed to this report.
