Is investing in gold close to retirement a good option?


The current high price of gold indicates its rising demand. If prices continue to rise in this manner, gold investments will surely provide handsome returns in the near future. However, this option will work only for those who have enough money and time to invest in gold. If you are retiring soon then investing in gold may not be the best option for you. Here are some of the reasons for the same.

No regular income 

Your working days provided you with regular income that you used to run your family. That source of income will stop once you retire. To ensure that you continue to get regular income, you need to invest in the right products. If you invest in gold, there is a chance that the invested funds will be blocked as gold may not provide you with continued income. It is a one-time investment and gain option which you would not require during or post your retirement. To maintain the regular expenses of your family, you must invest in instruments that will provide you regular income by way of dividends or interest. Prices of gold have been increasing since the past decade but one does not know where they would peak. Those who caught the prices of gold just when they began rising would be more advantageous than those who have entered later.

You need growth 

If you invest before your retirement, you must ensure that those investments provide you good returns by the time you retire. The value of gold may be rising since a while but history has shown that gold has not always been stable when it comes to price. You must secure your investment in some instruments that show constant growth. However, do not entirely rule out gold as an investment option. Diversify your investments and allocate some funds to gold. Asset allocation helps you recover losses with another instrument when one fails.

Gold that you already own

Every Indian family owns some amount of gold jewellery. If you too own gold jewellery, it is time to find out its worth. The gold that you own is an investment already made. If you already have enough, you must avoid investing in gold again.


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