Retirement and investment in gold

People early in their careers or approaching retirement age often choose to allocate funds to help pay for their old age. There are a number of assets in which people can put their money, including stocks, bonds and commodities. Some retirees choose to invest in gold, but gold is a much riskier than many other types of investment assets.

Retirement Planning

Many people choose to separate money before retirement. Thus, in addition to receiving benefits from Social Security and other government funds or employers will be able to acquire some financial security in their golden years. Although people cannot invest in gold with 401(k), and other highly regulated accounts can put aside the money and buy the merchandise on their own.

Investing in gold

People can buy gold in various forms, including gold bullion or gold jewelry, or may invest in financial assets, such as future goods or exchange traded funds that are linked to gold. Gold is relatively easy to buy and can be purchased in different amounts.


The downside of investing in gold is that it is very risky. In the past, gold has risen in price only to suffer a fall that sends its value plummet. According to the financial services company Equifax, investing in gold is nine times riskier than investing in Treasuries United States. Therefore, a person who invests in gold faces a high risk of losing a significant amount of money.


While a person planning for retirement may want to invest a small amount of money in gold, it would be very risky to invest most of their funds in this commodity. A good rule of thumb to invest in risky assets is to invest only the amount of money you can afford to lose. Thus, if the asset value falls, you will not be ruined.