{"id":12768,"date":"2022-03-07T09:56:29","date_gmt":"2022-03-07T15:56:29","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=12768"},"modified":"2022-03-07T09:57:36","modified_gmt":"2022-03-07T15:57:36","slug":"is-gold-a-good-investment-for-retirement-income","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/is-gold-a-good-investment-for-retirement-income","title":{"rendered":"Is Gold a Good Investment for Retirement Income?"},"content":{"rendered":"

With its long history as a store of value, gold has traditionally been used by investors to guard against stock volatility, currency fluctuations and other market risks. But with the extreme unpredictability<\/b> we’re currently experiencing, how should you view gold as an investment?\u00a0<\/strong><\/p>\n

Gold has always had a sense of allure to it. For thousands of years, humans have looked to gold as an investment and as a store of value. For the past century gold has swung in and out of fashion with investors, surging in times of economic stress or political turmoil. When asked if it’s a good investment, the answer is essentially, maybe. At Johnson Wealth Income Management, our job is to help ensure that our clients are investing in gold<\/a> moderately, and in a well-informed and educated manner.<\/p>\n

Here\u2019s a look at the ins-and-outs of investing in gold.<\/p>\n

Gold: Pros and Cons<\/strong><\/h4>\n

It’s important to recognize that over the course of time gold and other precious metals have been seen as inoperative. Precious metals are a commodity and are used in our day to day lives. For example, we use a lot of silver and gold daily in the jewelry we wear, the money in our pockets, the art on our wall and even in our technology like our iPhones, computers, and tablets.\u00a0<\/span><\/p>\n

Historically, they’ve been owned because they have an inflation edge to them. Nixon changed the way gold was valued back in the 70\u2019s when he took us off the gold system. The gold system is a monetary system in which the value of a country’s currency is based on a fixed quantity of gold. In practice, central banks made sure that domestic currency was easily convertible into gold at a specific fixed price.\u00a0<\/span><\/p>\n

Gold fluctuates whenever we go through tough economic times and then goes back down when we’re out of tough times. Here’s a look at some of the pros and cons of investing in gold:<\/span><\/p>\n\n\n\n
Pros<\/b><\/p>\n

\u2022 Hedge against inflation<\/span><\/p>\n

\u2022 Diversification<\/span><\/p>\n

\u2022 Tends to grow in value during bad economic times<\/span><\/td>\n

Cons<\/b><\/p>\n

\u2022 Not an income producer<\/span><\/p>\n

\u2022 Volatile<\/span><\/p>\n

\u2022 Speculative; only worth what buyers will pay<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Gold Stocks aren’t the Same Thing as Physical Gold<\/h4>\n

Some investors like investing in gold stocks because they offer exposure to gold. However, it’s important to note that you are, in fact, investing in stocks and not actual, physical gold.<\/p>\n

Gold stocks function like other stocks; essentially you\u2019re investing in companies who mine or own gold on your behalf. Physical gold is a more stable investment that you yourself own and store in an IRA-certified account.<\/p>\n

However, there\u2019s a lot more that goes into whether you should invest in physical gold or gold stocks. Your investment goals and starting capital will impact which investment you choose:<\/p>\n