Saving for your retirement is a huge financial responsibility. Few jobs offer pensions the way they used to, and public pension payments are not enough to live on if they are your sole source of retirement income. You have to save as much as possible. Still, even fiscal restraint and setting aside a significant chunk of your paycheck aren’t enough to secure a consistent, comfortable quality of life when you stop working.
In order to save the kind of money you need to fund your retirement, you will also need to invest. It can be tough to know what to do or who to listen to when it’s your future quality of life and money at stake.
Retirement investing is complicated, and you should get as much information as possible about different financial vehicles. This guide will focus on the role that gold and silver bullion can have in your retirement planning.
Bullion: Why You Should Invest in Gold and Silver
Bullion can play several different roles in your portfolio:
1. It’s a hedge against major risk factors, such as geopolitical crises and events that can devalue fiat currency.
2. Gold has a history of maintaining its value compared to inflation, preserving your wealth compared to cash while maintaining relatively little risk.
3. Bullion tends to have a low correlation to stock markets, meaning that when recessions or stock market crashes happen, bullion investments are relatively unaffected.
Investing in bullion gives you a countermeasure compared to other assets that will likely make up the majority of your portfolio.
How Do You Invest in Bullion?
Bullion refers to physical gold and silver. It comes in the form of bars or coins. You can buy gold and silver in physical form from bullion dealers. Investors who are interested in bullion primarily as a financial instrument will want to focus on bars or mainstream coins rather than collectibles and novelties.
Bullion dealers Global Bullion Suppliers help first-time investors with bullion consultation. They explain everything, including bullion terms, how to buy and sell bullion, what goes into prices, and everything you need to become a savvy bullion investor.
There are other ways to invest in gold and silver, such as Exchange-Traded Funds, if you don’t want to handle the physical product itself. However, gold ETFs do come with fees that pay for the people managing them, and they largely try to replicate the price of gold itself anyway. It may make more sense to simply buy the real thing.
How Much Bullion Should You Invest In?
Finding the right asset mix is the secret to successful retirement investing. Bullion can diversify your portfolio, but it shouldn’t make up too much of your wealth. Experts recommend putting about 10% of your portfolio into bullion, although the exact number will depend on your specific financial goals.
The right balance of bullion will make your portfolio more resilient to market crashes, recessions, and crises. Bullion provides a counterbalance to market risks, and it can be a valuable inclusion in your portfolio.
