Retirees: How a Small Gold Allocation Can Soften Losses When the Stock Market Wobbles
It’s likely not surprising that the markets have been a roller coaster of a ride the last few years, with crypto, stocks, bonds, and real estate assets all seeing amazing ups and disastrous lows. In 2025 though, gold set record prices — we reported in October that the precious metal had leaped 60% in value over the year.
A small gold allocation can reduce portfolio drawdowns because gold often behaves differently from stocks, especially in stress periods; it can hold value or even rise when equities fall.
Diversification effect
- Historically, gold has shown low or sometimes negative correlation with equities, particularly during market crises, which means it does not always move in the same direction as stocks.
- When stocks sell off, the relative stability or gains in gold can offset part of the equity losses, lowering peak-to-trough declines at the total-portfolio level.
Insights from allocation studies
- Research on mixed portfolios finds that adding a modest gold slice (often in the 5–10% range) can improve risk-adjusted returns and reduce volatility versus an all-stock or stock-bond mix.
- In backtests, portfolios with some gold exposure typically show shallower maximum drawdowns during major equity bear markets compared with portfolios that omit gold entirely.
Why this matters for retirees
- For retirees or near-retirees, smaller drawdowns help mitigate sequence-of-returns risk, where early losses can permanently damage a portfolio that is also funding withdrawals.
- A buffer asset like gold can provide a funding source during equity slumps, letting investors tap the more resilient sleeve instead of selling stocks at depressed prices.
For retirees who decide that a small gold allocation belongs in the mix, the next step is figuring out how to add physical metal in a way that’s simple, tax-efficient, and doesn’t take over the whole portfolio. Starting with a specialized provider like American Hartford Gold is recommended.
How to get started with American Hartford Gold
- Decide whether you want exposure through a tax-advantaged Gold IRA, direct ownership, or a mix, and how small a slice of your overall retirement assets you’re comfortable earmarking for metals.
- Contact American Hartford Gold by phone or online to speak with a precious-metals specialist, who can walk through your current accounts, goals, and time horizon in plain language.
- If you choose a Gold IRA, American Hartford Gold coordinates with your existing custodian to transfer or roll over funds, aiming to handle paperwork so the process is as seamless as possible.
- Once the account is funded, you select specific coins and bars that meet IRS rules; the metals are then shipped to an approved depository and held in your name, with periodic statements so you can track the position alongside your other assets.
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For retirees who see gold as a modest buffer rather than a speculative bet, American Hartford Gold offers a way to integrate physical metals into an existing retirement plan, with help on rollovers, storage, and eventual selling. As with any move that affects your nest egg, it’s wise to discuss the size of a potential gold allocation with a qualified advisor, but for those ready to take the next step, American Hartford Gold can provide the operational support to put a small, carefully chosen gold position in place.
Sponsored by American Hartford Gold
The information provided on this page is for educational purposes only and is not intended as financial or investment advice. All investments carry some degree of risk. Past performance is not indicative of future results.