HomeResourcesA Case for Physical Gold as Part of a Well Diversified Retirement Portfolio

A Case for Physical Gold as Part of a Well Diversified Retirement Portfolio

Invest in Gold for Retirement - Royal Bull

If you ever want to retire, you’re going to need a nest egg to ensure that you can do so comfortably and still enjoy the things that Canadians often dream of doing.

Before you decide on how to make your dream retirement happen your best bet is to do your research, choose your investment product, buy it and hold.

Investing in gold may be a great way to ensure that your retirement goes as smoothly as you hope, from a financial perspective. 

We recommend investing in gold for a number of reasons.

Gold is a Great Way to Diversify your Investment Portfolio Without Counterparty Risk

Many investments increase in value when the economy is booming. When businesses are making money, when minerals are being extracted from the ground, when consumers are buying products and services, and when life is good. 

But when recessions occur, as often as once every ten years, many stock-based investments tend to reflect the general mood of the economy and tank. That is, except for the investments that are often used as a hedge against the economy – gold. Gold does not correlate with stock markets and is considered safer from turbulence.

Gold Can Be a Key Part of your Registered Retirement Savings Plan (RRSP)

If your gold is at least 99.5% pure, you can add physical gold to your RRSP. Keep in mind that this only applies to the value of gold bullion and doesn’t take into account the value of other aspects of the gold, such as its historical value or special designs. Your bullion must have been produced by the Royal Canadian Mint.

Be sure to speak with Royal Bull about the process involved with adding gold bullion to your RRSP. Our investment team can give you your options and walk you through your options.

Gold Has Long-Term Value and Positive Price Performance

It’s easy to judge an investment by the amount of money that the price rises in a day, week or even month. But when you are thinking about your investment for retirement, you are thinking of years and even decades down the road. 

Looking at the price of gold as of this article’s writing, its spot price for an ounce of gold is sitting at around $2,342 CDN. If we look back at those who invested 20 years ago and 30 years ago, we can see some significant gains in their investments. 

Twenty years ago, the spot price for gold was approximately $493 CDN per troy ounce. This shows that although holding for a few years might not amount to much gain, there is a significant opportunity for those who choose gold and hold over the long term. 

Gold Does Not Require Investment Maintenance

At the moment, the housing market is doing well, but look at the maintenance and attention needed to make it happen. Owners of these properties have to deal with tenants who don’t pay, thousands of dollars in maintenance every year, and many fearful knowns. 

Keep your gold safe and pristine. That’s all it takes to make this retirement investment do the work for you.

Physical Gold is Safe in Your Possession

Cryptocurrency can be lost forever if you lose a password. Houses can burn to the ground and be made worthless. When kept properly protected, precious metals like gold last forever.

Gold has been proven for thousands of years

Bitcoin’s epic rise and fall has made thousands of people lose their investments. It is said that more than 40% of Bitcoin investors are now losing money. This number will likely increase as people realize the investment has no physical value and little digital purpose.

If you are considering a long-term investment to add to your retirement portfolio, consider holding gold. It diversifies your holdings, has long-term value, does not require maintenance, is safer than other options, has been trusted for thousands of years, and will never fade away. Contact the experts at Royalbull.ca to get started right away!