As we enter the midway point of the 2020s, there’s been a lot of talk about asset diversification, and rightfully so. The current economy is questionable and uncertain — and there are plenty of retirees who are concerned about its future, as well as their own.

At a time when fiat currency is steadily losing its buying power, we must consider other options to fortify our wealth. It’s here that many turn to gold. If you’re like most people, you probably (and understandably) have a lot of questions about gold as an acquisition.

Consider this your guide to gold, where we answer the what, why, how, and when of buying this precious metal to protect your retirement. First, we need to talk about the elephant in the room: inflation. It’s one of the single-biggest driving factors that’s pushing retirees to think about gold for retirement.

What Is Inflation and How Can It Affect Your Retirement?

You’ve probably noticed that prices at the grocery store and gas pump seem to be creeping up more than usual. That’s inflation at work. Simply put, inflation is when the cost of goods and services goes up while the value of each dollar in your pocket goes down.

Over time, inflation can seriously cut into your purchasing power, especially when you’re relying on retirement savings to get you through your golden years.

Now, here’s where it gets tricky: traditional savings accounts and even bonds can’t always keep pace with inflation. Your money may be safe in the bank, but its buying power is shrinking. That’s why many people start to look for alternatives — something that can hold its value even as inflation chips away at the dollar.

This is where gold comes in. Physical gold has a history of holding steady or even increasing in value during inflationary periods. It doesn’t get eroded like cash in a bank account.

Instead, when inflation rises, the value of gold often follows, helping protect your hard-earned savings. Many people find comfort in the fact that while their dollars might lose value, their gold won’t. In uncertain times, that can bring a lot of peace of mind.

Why Choose Gold as a Safe-Haven Asset?

Gold has been around for a long time. For thousands of years, gold has been used as money, traded across continents, and held onto as a symbol of wealth.

More than an appealing metal, gold is something people turn to when everything else seems uncertain. When times are tough and the economy’s looking shaky, gold is often the go-to asset that can weather the storm.

Take the 2008 financial crisis, for example. As the stock market tanked and people watched their portfolios shrink, gold held its value — and even went up. This wasn’t the first time, either.

Throughout history, gold has been seen as a “safe-haven” asset, meaning when things go south in the economy, people turn to gold because it tends to maintain or even grow in value. It’s a hedge against inflation and uncertainty, which is why it’s so attractive during periods of economic instability.

Now, not all gold is created equal. Physical gold — actual bars and coins you can hold in your hand — isn’t tied to the stock market like gold ETFs or shares in mining companies. Those paper assets can fluctuate with the market, just like stocks and bonds.

So, why choose physical gold? That’s something you own outright. It doesn’t depend on a company’s profits or market conditions, which makes it an appealing option for people looking to reduce risk in their retirement savings.

What Is a Gold IRA?

So, you’ve heard about a Gold IRA and you’re wondering if it’s worth your time. The answer for many people is a resounding yes. A Gold IRA, or Gold Individual Retirement Account, is a type of self-directed IRA that lets you hold physical gold (along with other precious metals) as part of your retirement portfolio.

It’s a way to diversify beyond traditional assets like stocks, bonds, and mutual funds, giving you another layer of security. Here are just a new of the benefits of a Gold IRA:

Portfolio Diversification

Adding gold to your retirement portfolio means you’re spreading your risk across different types of assets. Most people’s retirement savings are tied up in stocks or bonds, both of which can be pretty volatile.

Gold, on the other hand, tends to move differently than those assets, meaning that when the stock market takes a hit, your gold might actually hold or increase in value.

Inflation Hedge

As we’ve mentioned, gold has a unique ability to keep pace with inflation. As the value of the dollar drops, the price of gold often rises, which helps protect your savings from losing purchasing power. A Gold IRA lets you tap into this benefit while keeping your retirement portfolio well-rounded.

Protection from Economic Downturns

Markets are unpredictable, and the last thing you want is to see your retirement savings disappear when a downturn hits. Gold has a track record of staying strong during economic downturns, making it a reliable safeguard for your retirement.

How To Set Up a Gold IRA

Setting up a Gold IRA is simpler than you might think. American Hartford Gold makes it easy by guiding you through the process of purchasing the physical gold that goes into your IRA. While we don’t manage your IRA or act as a depository, we do provide the gold bars or coins you’ll need.

Once purchased, the gold is stored in an IRS-approved depository, ensuring it’s kept safe until you’re ready to access it in retirement. It’s a straightforward process that gives you peace of mind knowing your assets are diversified and protected.

How Does Physical Gold Compare to Real Estate?

Some people might consider real estate as another safe-haven asset, but here’s where gold stands out. Real estate doesn’t have the same liquidity as gold.

Need quick access to cash? Selling a house can take time, involve fees, and depend on the market conditions.

With gold, it’s much easier to buy and sell when needed. Plus, real estate values can be affected by local conditions, while gold has global value, making it a more stable option for people looking to protect their wealth no matter what’s happening in the world.

What To Know About Gold Storage Fees

Sure, storing physical metal requires a secure place, but it’s a small price to pay for the peace of mind you get in return. When you work with American Hartford Gold, your gold is stored in an IRS-approved depository, ensuring that it’s safe, insured, and easy to access when needed.

While there are storage fees, they’re worth it to know your gold is protected and secure, far from the reach of market fluctuations and economic turmoil. The trade-off pays for itself, giving you both security and peace of mind.

While we can’t predict the future, it’s plain to see that fiat currency no longer possesses the holding power it once commanded. Thus, it’s time to take action to ensure not just your financial future but also the futures of your loved ones.

Is Gold an Inflation Hedge?

As inflation rises, the value of your dollars shrinks. What used to cost $100 might soon cost $120, and that’s where gold steps in.

Historically, gold’s value tends to increase when inflation spikes. This makes it a solid hedge against the rising cost of living, ensuring your purchasing power stays intact.

Now, let’s compare gold to other assets like currency or bonds. During inflationary periods, cash loses value quickly, and bonds may not offer enough returns to keep up. Gold, however, holds its ground — or even climbs in value — during these tough times. Unlike paper currency that can be printed at will, gold is finite, making it a dependable store of value when inflation threatens your savings.

For those thinking long-term, gold’s ability to maintain value makes it a top choice for preserving wealth. Whether it’s held in a self-directed IRA or stored as physical gold coins or bars, this precious metal offers stability when the future looks uncertain.

You don’t have to worry about market crashes or a shrinking dollar because gold has proven time and again to be resilient, protecting your hard-earned savings from inflation’s bite. Don’t let yourself get caught in the inflation trap.

Choose gold, and discover the security and peace of mind it brings.

How Much Gold Should Be Part of Your Retirement Plan?

So, how much gold is the right amount for your retirement? While there’s no easy answer, many financial experts suggest that a well-diversified retirement portfolio should include about 5% to 10% gold. This allocation allows you to benefit from gold’s stability without putting too much of your savings into one asset class.

Your risk tolerance and financial goals also play a role. If you’re more conservative or worried about economic uncertainty, you might lean toward the higher end of that range.

On the other hand, if you’re comfortable with more traditional assets, a smaller gold allocation may still offer the inflation hedge you’re looking for. The key is to find a balance that fits your personal finance strategy and gives you peace of mind for the long haul.

Buying Physical Gold for Your Gold IRA

Thinking about adding gold to your retirement plan? American Hartford Gold makes it easy. The process starts by opening a self-directed IRA, which allows you to hold physical assets like gold. You’ll work with a financial advisor or custodian who specializes in these types of IRAs to get the account set up.

Then, we help you purchase the gold coins or bars that will be added to your account. It’s a smooth, hassle-free process designed to get you started quickly.

Why choose American Hartford Gold? Aside from our excellent customer service, we’ve earned a reputation for helping clients make smart decisions about their precious metal holdings. Whether you’re looking to buy gold, silver, or even palladium, we provide expert guidance every step of the way.

Once you’ve purchased your gold, it’s stored in an IRS-approved depository. These secure facilities ensure your gold is protected and easy to access when needed. With American Hartford Gold, you know your retirement savings are in safe hands, giving you peace of mind as you plan for the future.

Securing Your Retirement With Gold

When it comes to securing your retirement savings, gold offers a level of protection that’s hard to beat. Whether it’s shielding your assets from inflation or diversifying your portfolio with a safe-haven asset, gold is a reliable tool for long-term wealth preservation.

If you’re ready to take the next step, consider working with American Hartford Gold to add physical gold to your retirement plan. Our expertise, dedication to customer service, and commitment to helping you make informed decisions make us your trusted partner in your financial planning journey.

Take action today and secure your financial future with gold. Contact American Hartford Gold to get started.

Sources:

United States Inflation Rate | Trading Economics

The Great Recession and Its Aftermath | Federal Reserve History

Self-Directed IRA (SDIRA): Rules, Investments, and FAQs | Investopedia

How much should you invest in gold? Here’s what experts say | CBS News