Investments are all about timing. And, for some investors, that timing is more important to get right than others. Younger people, for example, have a longer horizon to correct any errors or poor returns on some experimental investments. Older investors, however, have less wiggle room. For seniors, an investment has to make sense of both short-term and long-term for it to truly be valuable. With that in mind, many may be wondering if they should still invest in assets like gold in the upcoming year.
Long known for its buffer against inflation, some seniors may be investigating the benefits of gold now. But gold isn’t just helpful during inflationary periods. It has other benefits that could be advantageous for seniors, both now and past 2024.
Start by exploring your gold investing options here to learn more.
Should seniors invest in gold in 2024?
There are some compelling reasons seniors may want to invest in gold in 2024. Here are three:
To diversify their portfolio
As anyone who has experienced the consequences of a stock market downturn can attest, it’s best to spread out your investments to offset the inevitable declines. While the stock market has rebounded from the pandemic-era lows, there’s no telling what will happen in the future. But gold can help by diversifying a portfolio otherwise heavily made up of stocks and bonds. That’s because gold tends to maintain its price and value when other asset classes look shaky, helping your portfolio by buffering against losses felt elsewhere.
Learn more about how gold can diversify your portfolio now.
To have a tangible asset
Gold is a liquid, tangible asset because it’s generally easy to buy, store and sell. You can even buy gold bars from Costco and Walmart with a few clicks on-line. This can be an attractive feature for seniors who may have otherwise had their money tied up in other, more difficult-to-access asset classes.
That said, gold doesn’t have the same benefits as those others, more volatile assets do either, so prospective investors need to carefully consider the pros and cons before getting started — and aim to keep their overall gold investment to 10% or less of their wider portfolio.
To (still) protect against inflation
Sure, inflation is on the right track and is down significantly from the 40-year high it hit in June 2022. But there’s still work to be done and it remains above the Fed’s goal of 2% (it was 3.2% for October). So if you still need protection against the worst of inflation it can’t hurt to invest in gold, if only for the stability it can provide during inflationary periods.
Plus, inflation is cyclical and will inevitably tick back up again at some point in the future. It makes sense, then, to prepare now by moving a small portion of your portfolio into the shiny precious metal.
Learn more about your gold investing options here.
The bottom line
It’s never really a bad time to invest in gold, even for seniors. But 2024 could be an opportune time to truly take advantage of the precious metal’s multiple benefits. By investing in gold now, seniors can better diversify their portfolios, and they can do so with a tangible asset that’s simple to buy, store and sell. And it will continue to provide some protection against today’s cooling inflation — and any inflationary concerns that arise in the future. That said, gold is not the same income-producing asset that other investments are, so it pays to speak to an expert or financial advisor who can carefully guide you through the gold investing process.