Experts Advise Seniors on Gold Investments Amid Steady $4,700 Prices

Gold prices have fallen from their peak earlier this year but remain elevated near $4,700 per ounce since April. Geopolitical turmoil and the Federal Reserve's recent moves have kept prices steady, leaving many to guess at future interest rates. The Fed's policy ranks among factors that sway gold prices. With levels now below those of recent months, some see a chance to buy before any rebound.

Financial experts weighed in on whether seniors in or nearing retirement should invest in gold now and how to do it right.

Buy enough to diversify. Markets face volatility from geopolitical uncertainty, inflation, and unclear Fed actions. That raises risks, especially for stocks.

"At a time when markets are navigating geopolitical fragmentation, inflation risks and growing fiscal imbalances globally, gold remains one of the few assets without direct counterparty risk," said Hiren Chandaria, managing director at digital gold platform Monetary Metals. Gold thus helps seniors shield wealth when other assets drop.

"Gold is known as a safe-haven asset during turbulent times, meaning it is often uncorrelated with the stock market," said Corey Bates, investment advisor at Solomon Financial. "That makes gold an excellent way to add some diversification to the portfolio, which can reduce overall risk."

Look into gold ETFs or mining companies. Rising inflation and fuel costs call for liquid options if cash needs arise. Physical gold takes time to sell and may require storage retrieval.

Gold ETFs offer an alternative. "ETFs are liquid and easier for both the investor and the advisor to manage and monitor ongoing," said Eric Elkins, CEO of Double E Financial Solutions.

Gold mining companies also hold promise, said Thomas Winmill, portfolio manager of Midas Funds, whose MIDSX fund targets such firms. "In a positive gold price environment, gold mining companies enjoy amazing operating leverage," Winmill said. "Their profits and share price can increase by a multiple of the increase in the gold price."

Sell if you have too much. Experts suggest seniors limit gold to 3% to 10% of assets. Gold produces little income, and retirees need steady payouts for expenses and medical bills.

"If you have more than 3 to 5% of your assets in gold, then sell an amount to keep some as a hedge in your portfolio, and the rest sell," said Steven Conners, founder and president of Conners Wealth Management. "It is not going to repeat the performance that we witnessed."

Use sale proceeds for income options. "Retirees should consider a fixed-index annuity that pays monthly income," Conners said. "Interest rates from major insurers for lifetime income are at the highest level in years, and your principal is guaranteed not to lose any value."

Commit to long-term holding. Treat kept gold as a long-term bet, not for quick trades. Experts see limited price gains this year.

"I do not see gold increasing in value this year," Conners said. "It'll most likely be where it is now in the next three to six months. I don't have a crystal ball, but it has already outperformed by a wide margin, and it won't trade like a fast-growing company."

Gold suits long-term wealth storage within a broader plan. "With the current performance of gold, it's wise to view gold as a long-term hold rather than an opportunity to aggressively sell," Elkins said. "Using baseball as an analogy, I would ask the investor, would you be happy with most of the time getting on base via a walk, bunt, or single? If they say yes, then gold might be a good fit."

Invest gradually. Prices may stay flat, so spread purchases. "For investors looking to deploy larger sums or rebalance portfolios, a more disciplined approach may be to initially park capital in liquid money market funds and systematically allocate into gold over time," Chandaria said. "For example, an investor targeting a 10% gold allocation could gradually shift portions of capital into digital gold or gold ETFs over several months rather than deploying everything at once."

This averages costs and catches dips. "Rather than trying to perfectly time the market, investors may be better served gradually accumulating on price weakness over time rather than deploying capital all at once," Chandaria said.

Gold fits many but not all. Consult professionals and track markets. "Gold should not be viewed in isolation, but as part of a broader portfolio construction framework focused on risk-adjusted returns and capital preservation," Chandaria said.