Gold, silver as retirement investment vehicles

Retirement these days seems nearly impossible for anyone before the age of 50: high debt volumes, a devaluing currency, a rising cost of living and a lack of valuable, genuine assets. The question has turned from “when will I retire?” into “will I ever retire?”

For youth, it’s a lot worse. Immense student loan debt and a paucity of well-paying jobs could very well hinder any young adult’s winter years. This week, it was reported that student loan debt has surpassed $1 trillion and presently affects more than 37 million Americans – the average debt load is roughly $29,000.

What can future retirees do to circumvent a disastrous retirement? Well, perhaps gold, silver and precious metals in general are the answers to our retirement woes. It’s inevitable that the dollar will collapse within the next half-century and gold and other commodities will be extremely valuable to investors everywhere.

Gold, for instance, has been forecasted to reach several thousand dollars within the next few years alone. Silver, meanwhile, is also projected to reach record levels in the next decade. Precious metals will turn out to be one of the most profitable ventures in the world in the near future, despite the intentions of the Federal Reserve and central banks worldwide.

After a difficult 2013, gold has enjoyed a stellar year thus far. Silver, though, has maintained the status quo and has traded anywhere from $20 to $25 per ounce.

Investors tend to look at gold as a profit tool. Instead, the yellow metal should be used as a safe haven against inflation and to keep your wealth safe and secure. Rather than watching your wealth erode, you can protect it with precious metals, something that is extremely important in retirement. Let’s say that the Fed implements two percent inflation rates annually – as a hypothetical – then compounded over the next 30 years that’s a large sum and a concept that the average person can’t afford.

Of course, your investment portfolio doesn’t have to just physically own these metals. There are plenty of stocks, mutual funds and investment retirement accounts (IRAs) that include gold and silver as well as mining and resources. These are some of the best options to fully utilize gold and silver in your retirement years.

“We don’t look at gold in isolation, rather we look at the benefits that gold brings to all investments, stocks, bonds, real estate or other alternatives.  We have found through our research that holding 2-10% of gold in a portfolio reduces volatility and losses in times of systemic failure of equity and fixed income markets,” said Juan Carlos Artigas of the World Gold Council. “We found that investors holding gold in times of systemic losses alone reduced losses 7.5%…”

There are other benefits as well, such as no long-term fees, a hedge against any unforeseen circumstances that affect the market, it’s easy to physically own  – what if financial institutions go bust? – and it’s also very simple to inherit or pass down to the next generation.

At a time when Social Security is on the verge of insolvency and the United States is on the cusp of bankruptcy or astronomical inflation because of $200 trillion in unfunded liabilities and expenditures, you’ll need a sound investment tool that’s as good as gold, or silver for that matter.

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