My Precious: Using Gold to Protect Pension Assets
The comments below are an edited and abridged synopsis of an article by Jenna Brown
Does new pension freedom introduced for the British public in April provide more control and flexibility for retirees to achieve the best value from their retirement savings? Some people may misallocate their cash, or suffer at the hands of market turmoil, and be left with little to provide for their retirement years. Diversification to create groups of assets that reduce volatility is an important component of reaching long-range financial goals.
When stock markets and bonds fall, the price of gold will likely increase. Gold is often used by investors to provide insurance against market shocks, as it is non-correlated to the most common asset classes. Therefore, holding some gold in a portfolio will reduce the volatility of your pension pot. A significant market fall 5 years or less before you were looking forward to drawing your pension would leave you with the dilemma of postponing your retirement in the hope that, over time, markets would recover value, or simply retiring with a compromised lifestyle. Buying securely segregated and allocated gold means exciting pension changes
Paper gold is a derivative of physical gold. Paper gold can