7 reasons for seniors to invest in 1-ounce gold bars this May

As persistent inflation and other factors continue to impact the economy, the gold market has been sizzling, drawing renewed attention from investors. After hovering just above $2,100 per ounce throughout March, gold’s spot price is now sitting comfortably above $2,300 an ounce (as of April 30, 2024). 

And, as the price of gold ticked upward in recent weeks, it hit a few new record highs along the way. At one point, gold’s price was hovering just under $2,400 per ounce, attracting a fresh wave of investors who wanted to capitalize on gold’s price movement while gaining a safe-haven asset amid market volatility.

If you’re interested in jumping on the gold investing bandwagon, you have lots of assets to choose from, including gold bullion, gold stocks, gold exchange-traded funds (ETFs), gold individual retirement accounts (IRAs) and even gold fractional coins and jewelry. But if you’re a senior who’s ready to capitalize on the benefits of gold investing, adding 1-ounce gold bars to your portfolio right now could make a lot of sense. 

Learn more about the many benefits of buying gold here.

7 reasons for seniors to invest in 1-ounce gold bars this May

Here are a few compelling reasons why seniors should consider investing in 1-ounce gold bars in today’s economic climate:

To hedge against inflation while on a fixed income

Today’s inflationary environment is stretching finances thin for many households, and that may be especially true for those who are retired or will soon be. After all, the main sources of income for many seniors are fixed streams like Social Security benefits, pensions and investment withdrawals. And, as consumer prices rise, the purchasing power of these fixed incomes gets eroded. 

But physical gold has historically held its value quite well during periods of high inflation, unlike cash, which generally gets devalued. So, owning 1-ounce gold bars can hedge against this loss of purchasing power, ensuring seniors can still afford the same goods and services their fixed income could buy previously.

Find out what your top gold investing options are today.

To gain a liquid asset without tying up much capital 

Gold bars come in a range of weights, but making larger gold investments, like 400-ounce bars or coins, can require huge amounts of capital that most seniors simply don’t have available. In contrast, many 1-ounce gold bars currently have a price tag that’s just slightly higher than the spot price of gold, allowing investors to get exposure to gold without requiring a prohibitive lump sum investment. 

And, if cash is needed in the future, 1-ounce bars offer superior liquidity comparatively. That can be beneficial for seniors, who may at times need to liquidate their holdings to cover unexpected bills or free up more cash for their expenses as the cost of living increases.

For diversification outside of stocks and bonds

Many seniors’ investment portfolios are largely made up of stocks, bonds, mutual funds and other paper assets. But, having too much concentration in any single asset class increases risk. Adding an alternative, non-correlated hard asset can help diversify holdings and balance out risk, which is especially crucial for retirees looking to preserve capital. And, physical gold is a great asset to consider for this purpose, as the price of gold has a low correlation to equities and bonds, which helps provide diversification benefits.

For a tangible asset that can be passed to heirs

For seniors looking to leave behind an inheritance, there is peace of mind in passing down tangible hard assets versus just stocks and funds on paper. And, physical 1-ounce gold bars can be stored privately and securely, providing a valuable store of wealth to distribute to heirs upon passing. This tangibility can also help to ensure that the enduring value is transferred properly.

To gain an asset with easy divisibility

While a large gold bar may be impractical to sell, gift or split up, owning multiple 1-ounce bars allows for easy divisibility. For example, seniors may need to sell their gold periodically to gain access to more cash, but that can be tough to do with large, high-value gold bars, as the buyer pool is smaller. 

But 1-ounce gold bars are more affordable and are in high demand, so seniors who opt for 1-ounce bars can sell them quickly — and without having to worry about selling portions of a larger bar, as that may take longer and carry higher premiums.

For the possibility of future price appreciation

While gold’s price can be volatile over the short term, gold has historically and consistently trended higher in value, stamping its role as a reliable long-term store of wealth. While the upside on any single small 1-ounce bar may be limited for seniors with modest capital, collectively owning several bars allows investors to affordably gain exposure to any future price appreciation in the gold market. 

And, with today’s gold prices on an upward trajectory — coupled with the expectations that gold’s price could continue to climb throughout 2024 — it could be a smart time for senior investors to capitalize on the opportunity to turn a somewhat quick profit.

For simple purchasing options

For many seniors, purchasing investments solely through online brokerages and platforms can be intimidating, especially for those who aren’t tech-savvy. But 1-ounce gold bars have the benefit of being widely available through local, long-standing coin dealers that seniors can visit in person. This face-to-face process removes the complexities of digital investing for those who are less familiar with it. And, there are many good online gold dealers to consider, too, for those who are less averse to navigating gold purchases on a digital platform.

The bottom line

In this current climate of stubborn inflation and market uncertainty, adding 1-ounce gold bars to one’s portfolio allows seniors to check off several key investing goals. These gold bars can serve as an affordable inflation hedge, portfolio diversifier and simple way to transfer lasting wealth, all prudent considerations for retirees. And, their compact, divisible nature suits the needs of those with modest capital looking to participate in gold’s historical upside. Those benefits, coupled with gold’s recent price surge and its historical role as a safe-haven asset, indicates that now may be an opportune time for seniors to consider adding these compact bars to their investment portfolios.