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When seniors should invest in 1-ounce gold bars (and when they shouldn’t)
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Gold’s long-standing reputation as a store of value may be attractive to many seniors looking to protect their retirement savings. Given gold’s recent price trajectory, its appeal may be even stronger in today’s market. Record gold prices in April and May surpassed the $2,400 per ounce mark and some experts anticipate the gold price hitting $2,500 before year’s end.
Fortunately, there are many ways to invest in gold, and one of the most popular options is 1-ounce gold bars. These bars are attractive because they offer a convenient size for easy storage and handling and they can hedge against inflation, which is especially important for seniors on a fixed income. 1-ounce gold bars also may provide greater liquidity than other gold options.
Still, gold investing isn’t for everyone. For example, gold doesn’t provide income or dividends, which retirees often seek to supplement their retirement income. However, 1-ounce gold bars are a popular option that could benefit many seniors.
Find out what your top gold investing options are now.
Why 1-ounce gold bars may be a good option for seniors
Many seniors are seeking a better place to store their money than traditional savings accounts, which don’t keep pace with inflation. According to May’s Consumer Price Index report, inflation stands at 3.3% over the same period a year ago, still higher than the Federal Reserve’s stated goal of a 2% inflation rate.
As such, buying gold bars could help you preserve your money since gold often has an inverse relationship with the dollar. When the dollar loses buying power, the value of gold tends to rise.
Even so, experts like Werner commonly advise against investing more than 10% of your portfolio in gold.
“A gold investment is always a good idea for seniors as long their gold investment has liquidity, and the senior doesn’t over-invest in gold by following the 1% to 10% total portfolio allocation rule,” says Werner.
Learn more about how the right gold investment could benefit your portfolio.
Why 1-ounce gold bars may not make sense for seniors
Gold tends to perform well as a hedge against inflation over a longer time horizon. However, short-term investors could get burned as gold can experience volatile fluctuations on a shorter timeline.
Also, gold and silver don’t produce income or dividends. So, if you’re looking for more income, equities and other investment options may be a better option.
Ebkarian notes that gold investing isn’t for all seniors.
“It depends on their time frame for ROI, risk tolerance and understanding of the costs and fees associated with buying physical gold,” Ebkarian says.
And, seniors should understand the fees involved in purchasing and storing gold before investing in the precious metal.
“Storing physical gold and silver safely can incur additional costs and logistical considerations, such as insurance and secure storage,” Ebkarian says.
Why are 1-ounce gold bars popular among seniors?
There are several ways to invest in gold, including bars of various sizes, gold IRAs and gold ETFs. So, what makes 1-ounce gold bars an attractive option for seniors?
“The main reason 1-ounce coins or bars are popular is because this is one of the smallest gold positions someone can take in physical gold,” says C3 Bullion CEO Chris Werner. “Depending upon portfolio value, they can be purchased in greater numbers to bring the gold allocation of the portfolio to a 1% to 10% of total portfolio value.”
Another key advantage of 1-ounce gold bars is their high purity and cost-effectiveness.
“They are known for their high purity level [and] don’t carry as heavy a premium as gold coins. And, they are very easy to resource and purchase, as well as liquidate if necessary,” Alex Ebkarian, COO and co-founder at Allegiance Gold, says.
The bottom line
Investing in 1-ounce gold bars can help you hedge against economic instability and inflation, which could be advantageous in today’s financial environment. Adding a small slice of gold to your portfolio may also provide diversity and stability to your holdings. Of course, investing is a personal decision based on your unique financial situation.
“The question of investing in gold versus other asset classes comes down to a person’s investment objectives, time horizon and other portfolio holdings,” says Robert R. Johnson, a professor of finance at Creighton University and CEO at Economic Index Associates. “In general, gold is more appropriate for a person seeking to protect wealth rather than build wealth over a long time horizon.”
If you decide to invest in gold, it’s essential to choose a reputable dealer that offers authenticity guarantees.
The International Brotherhood of Teamsters says workers at seven Amazon facilities will begin a strike Thursday morning in an effort by the union to pressure the e-commerce giant for a labor agreement during a key shopping period.
The Teamsters say the workers, who authorized walkouts in the past few days, are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. Amazon says it doesn’t expect any impact on its operations during what the union calls the largest strike against the company in U.S. history.
The Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices.
Amazon is ranked No. 2 on the Fortune 500 list of the nation’s largest companies.
At a warehouse in the New York City borough of Staten Island, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees – including many delivery drivers – have unionized with them by demonstrating majority support but without holding government-administered elections.
The strikes happening Thursday are taking place at an Amazon warehouse in San Francisco and six delivery stations in southern California, New York City, Atlanta and the Chicago suburb of Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join” them, the union said.
“Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement.
“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” he said.
The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board.
Meanwhile, Amazon says the delivery drivers, which the Teamsters have organized for more than a year, aren’t its employees. Under its business model, the drivers work for third-party businesses, called Delivery Service Partners, who drop off millions of packages to customers everyday.
“For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon spokesperson Kelly Nantel said in a statement. “The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union.“
The Teamsters have argued Amazon essentially controls everything the drivers do and should be classified as an employer.
Some U.S. labor regulators have sided with the union in filings made before the NLRB. In September, Amazon boosted pay for the drivers amid the growing pressure.
NEW YORK — The Teamsters union is launching a strike against Amazon at numerous locations across the country, including in Maspeth, Queens.
The Teamsters are calling it the largest strike against Amazon in United States history, and it’s set to begin at 6 a.m. Thursday. In addition to New York City, workers will be joining picket lines in Atlanta, Southern California, San Francisco and Illinois.
In a video announcement released Wednesday night, workers voiced their frustrations.
“Us being strike ready means we’re fed up, and Amazon is clearly ignoring us and we want to be heard,” one worker says in the video.
“It’s really exciting. We’re taking steps for ourselves to win better conditions, better benefits, better wages,” another worker in the video says.
The union says it represents about 10,000 Amazon employees and that Amazon ignored a deadline to come to the table and negotiate. The $2 trillion company doesn’t pay employees enough to make ends meet, the union asserts.
At the height of the holiday season, many are wondering what this means for packages currently in transit.
Teamsters President Sean O’Brien said, “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed.”
Amazon says Teamsters are misleading the public
An Amazon spokesperson says the Teamsters are misleading the public and do not represent any Amazon employees, despite any claims.
“The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union,” the spokesperson said in a statement.
An Amazon representative says the company doesn’t expect operations to be impacted.
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