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Is There a Place for Bullion in Your Retirement Portfolio?

Credit: Markus Skiske via Unsplash

Do you worry about how your portfolio is doing on a daily basis? Are you concerned about the state of the world when you retire and whether you’ll have enough money despite years of saving?

There are valid concerns about what your money may be worth in 30, 40, or 50 years’ time. Climate change threatens global stability, and rising sea levels and increased natural disasters could result in up to 18% of global GDP disappearing by 2050.

How can you ensure your savings will be worth something when you retire? One asset that you should think about including in your retirement portfolio is bullion.

Why Invest in Bullion

There are many financial products that you should include in your retirement portfolio. Stocks can help you grow your savings during periods of economic growth and prosperity, and bonds and term deposits can help provide safe, steady interest generation.

But when it comes to safe-haven assets in a crisis, bullion metals like gold and silver provide a deeper level of diversification. Due to bullion’s historic role as a means of exchange and a store of value for thousands of years, investors still turn to it when they lose faith in the value of paper currency and when the stock market becomes too volatile to provide reliable growth.

Gold and silver are among the best assets for wealth preservation. If your goal is to make sure your wealth is maintained against inflation, global emergencies, and shrinking GDP, bullion belongs in your retirement portfolio.

How Not to Buy Bullion

Whenever you invest, you want to be confident that you’re working with someone who you can trust, whether that’s a financial advisor, a bank, or a bullion dealer. These are the top two things you should avoid when you buy bullion.

#1 Don’t Buy Bullion in a Parking Lot

Avoid buying bullion bars and coins from sources you’re not familiar with and can’t research. You may find sellers using online classifieds or social media to sell bullion. Be cautious about doing business with them, especially if they ask to meet in a public place like a parking lot. This is how many stories of gold fraud come to be, where someone tries to pass off fake bullion products.

Gold and silver are investment products that can help you build financial security. When you invest, work with Canada’s most trusted source for bullion to get verified products that are widely accepted around the world.

#2 Don’t Borrow Money to Buy Gold

When you borrow money to buy a financial product, it’s called a leveraged investment. Leveraged investing or trading can be dangerous for several reasons:

  • First, going into debt means you will have to make interest payments. Bullion does not generate interest or pay dividends, and the debt will become an ongoing cost to owning it.
  • Leveraged investing can amplify the potential for losses. If bullion prices collapsed, you would not be able to sell your position to repay the debt.

That said, buying bullion strategically and from a reliable source is a great way to add security, stability, and long-term wealth preservation to your retirement portfolio.