The whole idea of investing to receive a steady retirement income is simple. You save up some capital, do everything you can to preserve that capital and invest in financial instruments that will, now or later generate an income. This could be stocks, Exchange Traded Funds, futures, and perhaps foreign currencies. If you ask yourself this: “which of these are the safest long term?” The answer might vary, depending on who you ask but it should be clear based on history that gold has been the most stable over decades. Why? Gold holds value independent of world politics.
There is no doubt that of all the precious metals, gold is the most popular as an investment. You can read more about investing in gold for retirement on this site: Trading in Retirement.
Many investors generally buy and hold gold as a way of diversifying their portfolio’s risk, especially using futures contracts and derivatives. The world gold market is certainly subject to speculation and volatility as are other financial markets. Compared to other precious metals used for investment, gold has been the most effective havenworld-wide.
How much of your portfolio should be in gold as opposed to stocks?
Some experts say 10% of your portfolio or assets should be in gold. They also recently stated that gold as a safe haven is better than government bonds. Especially long term. Other experts simply view gold as a currency – not a commodity. Gold’s importance as a currency will continue to increase as the major central banks around the world continue to print money. Gold is set to complete its 11th consecutive annual gain, the longest winning streak in at least nine decades. This article provided by: Investing for Retirement