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Market sees more retirees trading in gold 2010-05-17 Many Americans who lost their retirement savings in the economic collapse are trading up for a more reliable investment: gold. With the price of gold hitting a record high of $1,249.70 per ounce in May, more retirees are purchasing the metal as a way to avoid inflation and market volatility, according to ABC News. While metals are a good way to diversify an individual's stock portfolio, many experts warn retirees against relying too heavily on the investment, noting unpredictable price fluctuations, the news station reports. "My biggest concern is when the gold bubble eventually pops it will be felt as much as any other market bubble," Northern Financial Advisor's financial planner Robert Schmansky told ABC News. "I'm not sure we are closing in on that point, but no one will be able to time the top, and many ride their gold holdings down before selling. What seemed like a great idea at the time, doesn't guarantee results," he added. Retirees should consider examining all of their investment options before risking their nest egg on one sector. Portfolio diversification is an important component of retirement planning. Diversifying investments may allow retirees to protect retirement income from some market conditions, while benefiting from others.  |
