Gold at Historic Highs? A Financial Planner’s Take

With gold prices recently breaking all-time records—topping $3,400 an ounce in April—many seniors and retirees are asking, “Is now actually a good time to invest in gold?” As a fiduciary financial advisor who regularly helps with retirement planning and wealth management, it’s a question I help evaluate for many clients, especially those worried about inflation or market volatility.

As I shared with CBS News, gold can definitely play a role in an investment portfolio—but not as a ticket to riches or a headline-driven gamble. Instead, gold shines as a hedge: it helps diversify your portfolio and can offset volatility, particularly when the world feels more anxious than assured. I like to compare gold to a raincoat in your closet: it’s not the foundation of your wardrobe, but you’re glad to have it when storms roll in. That’s why, earlier this year, we allocated a small portion of client portfolios to gold (through efficient vehicles like the SPDR Gold Shares ETF, “GLD”) specifically as a tactical way to manage risk—not as a big bet.

History shows that gold holds up well in market stress. For example, during the 2008 financial crisis, gold rose 8% while the S&P 500 dropped over 38%. That ballast can be extra valuable for retirees, who might not have the luxury of waiting out a long market recovery.

But caution is crucial—especially at today’s elevated prices. Gold doesn’t produce dividends or regular income, which many retirees rely on for cash flow. Seniors should be wary of loading up on gold after a price run-up, since a pullback could hurt those with short time horizons. As a rule of thumb, a 4–9% allocation to gold or gold ETFs is usually appropriate—enough to help protect your nest egg, but not so much that it crowds out income-generating investments.

And there are smart strategies to help lower your risk even further: alternatives like dollar-cost averaging (buying in gradually over time) and fractional gold investing can soften the impact of big price swings. Of course, broad, liquid ETFs like GLD often make gold exposure easier (with fewer headaches and less cost than buying physical gold).

The bottom line: Gold can be a useful piece of the retirement planning puzzle, but it’s not a replacement for diversified, well-balanced investing. Before making any changes, review your goals and risk tolerance—or, better yet, talk it through with a certified financial planner. If you’re curious about how gold could fit in your retirement portfolio or need independent financial advice on today’s market challenges, I’m here to help you avoid the “too much or too little” trap and stay focused on your long-term peace of mind.

🟢https://www.cbsnews.com/news/should-seniors-invest-in-gold-with-the-price-so-high/