Gold has long been considered a smart way to hedge against inflation and diversify portfolios. Thanks to its historic reputation for maintaining and even rising in value during inflationary cycles, many have turned to the precious metal in recent years. Its ability to offset volatility in other assets has been attractive for investors of all ages. But with inflation cooling, interest rate cuts being issued and the price of the metal high, some investors may want to reconsider their approach to gold now.

This is particularly true for seniors who may have been considering adding a layer of gold to their investments. Long considered a safe-haven asset for seniors and older adults, many may be wondering about the benefits and security of investing in the metal amid today’s changing economic climate. Below, we’ll break down three things seniors should about the safety of gold investing now.

See which gold investment makes sense for you here.

Is gold still safe for seniors to invest in?

To better determine the value and safety of investing in gold now, seniors should account for the following three factors:

The price

The price of gold, not accounting for a minor drop to start November, has risen to multiple record highs so far in 2024, with the potential to hit $3,000 before the end of the year. This elevated price needs to be evaluated by seniors, particularly when compared to lower entry price points for alternative assets. That said, it may be smart to invest in gold now since the metal is down from a recent record high. Waiting could result in the price rising again, making any investment prohibitive — and you’ll miss out on the protection the metal can provide in the interim, too.

Learn more about the price of gold online now.

The need for portfolio protection

How have your investments been performing lately? The need for the type of portfolio protection gold can provide can help determine whether now is the right (or safe) time to invest. If your portfolio is already properly diversified then you may be able to skip an investment in gold. But if it’s been volatile, it may be better to offset stocks and bonds performance with a portion of gold. 

In other words: Gold can be a safe and smart investment if your portfolio is underperforming, but investing in it without reason or strategic intention would be a risky move, particularly for seniors who may find more benefit in income-producing assets. 

The intended use

With the price rising for much of 2024 and the rare opportunity to turn a quick profit by buying gold cheaply and selling it for a profit, it may be tempting to overinvest in the metal now. But that wouldn’t be safe for any investor, particularly seniors who can’t wait long-term for an asset to grow in value. So if that’s your intended use for gold investing now, it may not be a safe way to invest. But if you’re planning to depend on it for balance against other assets, an investment limited to 10% or less of your overall portfolio could be safe.

The bottom line

Ultimately, the safety and value of any investment is dependent on the individual. For some seniors, a gold investment with the price high and stock market performance strong, could be risky. For others, however, it can offer valuable portfolio protection and security at a time in life when the appetite and ability to sustain risk is lower. Only you will know which group you fall in. So explore your options carefully and consider speaking to a financial advisor or gold investing professional who can help answer any questions you may have in advance of an investment.