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Investing in gold and silver for retirement - could you boost your income?

Daily Express logo Daily Express 28/11/2021 Samantha Leathers
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Gold is often seen as one of the most stable and lucrative investment opportunities, but investing in gold doesn't start and end with hiding a gold bar under the bed. Gold bullion supplier Sharps Pixley shared expert insight into how gold and silver can fund a platinum retirement for Brits.

It is important to note that no investment is ever guaranteed and each investment will have capital at risk.

The biggest selling point for many investors when it comes to precious metals is the wealth protection that it offers.

Unlike digital investments such as cryptocurrencies or volatile stock markets, a physical piece of gold or silver is one of the most instantly tradable items for when one wants a return from their investment.

This makes gold and silver ideal for retirement investments, as it requires little effort to ensure it appreciates in value over time.

READ MORE: Woman smiling as gold dust falls around her © GETTY Woman smiling as gold dust falls around her

Lawrie Williams, expert at Sharps Pixley, shared some insight on how to invest in precious metals for retirement.

He commented: "It probably makes sense to keep some instantly tradable small bars or coins at your home for possible use in a total financial collapse."

However, Mr Williams added that rather than just keeping these incredibly valuable assets around the house it is usually best to keep them in a secure storage facility offered by businesses such as Sharps Pixley.

"Looking at precious metal investment in general, ETF holdings offer an option which can be easily traded much as gold stocks can."

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Mr Williams noted that gold mining stocks are also a valid investment option but investors are encouraged to do their due diligence in vetting their chosen companies.

He continued: "If one sticks to major gold mining stocks, there is more safety as they tend to control diverse mining operations which reduces risk.

"The upside stock price potential may be more limited with the gold majors, but most of the Tier one miners also pay dividends which are usually at higher yields than those offered in the financial markets and thus provide a welcome bonus for investors."

Gold, silver and other alternative investment types are becoming increasingly more popular in light of recent market fluctuations.

Golden egg in an egg cup © GETTY Golden egg in an egg cup

Aside from the stability of ever-appreciating assets like these, gold has also seen a staunch rise over the last twenty years even when compared to mainstream investments like property.

Since 2001, house prices have increased by 175 percent, with gold having risen by 556 percent in the same time period.

Gold and silver may also be an up-and-coming favourite investment option for new investors as the starting price will usually not require them to remortgage a house.

In a time where the minimum needed to survive each year in retirement sitting at £10,900 for a single person, it's no surprise that more pensioners are turning to passive, long-term investments with some level of dividends to keep themselves going.

An estimated 10 million Brits risk running out of money during their retirement, The Financial Times reported.

As Mr Williams noted, for situations like this where one requires something instantly tradable, gold or silver are the best possible investment choices.

However, as no investment is guaranteed it is generally advised that potential investors don't invest any money that they may crucially need to live off of.

Investors are also advised to be patient, as the most stable of investments, such as gold, often take a lengthy period of time to bring about the return they wanted.

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