Investment for retirement is something every person needs to think about in order to provide financial security for the years that come. People can ensure their financials for those long waited retirement years in multiple ways. However, the trend that becomes so popular nowadays is investing gold for retirement. In general, investing in gold bullions is straightforward and it provides storing wealth securely on a long way. In fact, many respected and reliable investment experts and financial advisors will recommend gold for a retirement fund. In further text, you will find out why!
The low-risk bullion market is straightforward
Actually, there are numerous ways that you can choose from for gold investment, however, the most simple one is to directly invest in gold bullion. This option brings the lowest risk and deciding on this step is very wise. The procedure of how to invest in gold is also pretty simple – you need to contact your accountant and ask for a meeting with a self-managed superannuation fund. Statistics show that more and more people are willing to choose this approach when it comes to managing their future wealth. In that way, they can enjoy and be peaceful about their retirement days.
Protect your current wealth in a traditional way
Basically, the retirement fund needs to be safely accumulated and to contain earned capital, so you can feel comfortable and relaxed for retirement days. The biggest benefit of investing in gold is the fact that this is the most traditional asset, unlike the currency or cash. Gold can not be printed and it can not lose its value. In other words, when you choose to save your wealth in gold, you are choosing an asset that historically holds value. There are no deflation, stagflation, disinflation, and hyperinflation that can influence the value of gold.
Historical performance
In 2001, the gold price was $271, however, a decade later it cost $1,896 which is 700 percent higher. The best of all is that gold price rises all the time and it performs unbelievably well in a period of economic turbulence and global financial crisis. In general, looking through history, we can conclude that while gold price can be unstable in short term, history tells us it is able to maintain its value over the longer term.
Gold is a finite rarity
The truth is that the world craves gold because there are fewer and fewer discovered ores of gold all around the world. South Africa was the richest in gold and the biggest producer, however, in the last decade, the yellow metal was more than halved. Also, when we talk about the total amount of gold on the ground it is increasing only by 1.6% per year.
Gold assists diversification
Many people are becoming very concerned about the fact that superannuation portfolios have been too focused on shares. The concern rose the most after following GFC when many assets formerly looked like they are secure and it was shown that they are not. Therefore, holders of superannuation funds were scared, and they had a good reason for that. Gold will definitely help people balance their superannuation portfolio, reducing both risk and volatility. If you are interested to find more about this, you can check Regal Assets and improve your knowledge even more.