8 Gold‑Buying Myths That Keep People in Their 50s and 60s From Ever Getting Started

Myths can keep people from taking actions that could benefit them in the long run. For instance, fears about losing money, missing out on opportunities and the complexities of investing in gold can prevent people from getting exposure to the precious metal.

But dispelling those myths can help you feel more confident in adding gold to your portfolio — and benefiting from its perks.

Myths about who should invest in gold

Adding gold to an investment portfolio may not make sense for everyone, but there are some myths that suggest gold is only for a small subsection of investors. These misconceptions may prevent investors from taking advantage of an opportunity that could enhance their portfolio.

• Gold is only for the ultra-wealthy: You don’t have to be rich to own gold. Investors can buy shares in a gold exchange-traded fund (ETF) and get exposure to the asset without owning and storing physical gold.
• Gold is just for doomsday preppers: Gold is considered a traditional safe haven — and that can apply to many scenarios, such as when the stock market gets rattled. It’s got multiple benefits, including acting as a hedge against inflation.
• Gold is only for retirees: Younger investors can also benefit from gold if they want to diversify their portfolio with an asset that isn’t correlated with stocks. This level of portfolio diversification can minimize losses during economic contractions. Younger investors can gradually boost their gold allocation as they get older and mitigate risk, but that doesn’t mean gold is exclusively for retirees.

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Myths about safety and returns

Although the first group of myths can discourage investors from investing in gold, this next group of misconceptions can result in unrealistic expectations that leave beginner investors displeased. Having a more realistic understanding of how gold works can help investors set reasonable expectations and use the asset more productively in their long-term plans.

• Gold’s price always goes up: Although gold’s price can rally during recessions and other economic cycles that feature declining stock prices, the precious metal’s price doesn’t always go up. Gold has endured multiple flat years, downward cycles and sluggish periods. It’s not guaranteed to gain value each year, but it can minimize risk in an equity-heavy portfolio.
• Gold is guaranteed to protect you: Gold can lose value just like other assets. Gold’s price tends to decline during economic cycles with high interest rates, since high yields make bonds look more attractive.

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Myths about how hard it is to buy and store

The final batch of myths revolves around getting access to gold. Knowing how easy it is to get gold exposure and the different options you have makes gold investing feel more accessible.

• You need a vault at home: Gold investors do not need vaults at home. But you should pick a secure location. Some gold investors store gold in their local bank’s safe and have insurance on the gold in case anything happens.
• It’s too complicated to own: You can get started with a gold ETF. These funds are very beginner-friendly and work similarly to stock ETFs.
• You can’t put gold in retirement accounts: Investors can get a gold individual retirement account (IRA) and put money in that account. But keep in mind that these IRAs tend to have higher fees than traditional IRAs, as well as strict rules from the IRS.

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