Gold as an inflation hedge - my experience and questions

Ruth Perez

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Gold as an inflation hedge - my experience and questions

ruth_perez📊Growing (50-100k)

about 2 months ago

Key Takeaways

•Been seeing a lot of chatter lately about inflation, and it's definitely got me thinking about my gold holdings.
•I started my Gold IRA a few years back, probably around 2019 or so.
•I put in a lump sum of about $50k that I had saved up, mostly just as a hedge against the kind of stuff we're seeing now.

See what your 401(k) could look like in gold

Been seeing a lot of chatter lately about inflation, and it's definitely got me thinking about my gold holdings. I started my Gold IRA a few years back, probably around 2019 or so. I put in a lump sum of about $50k that I had saved up, mostly just as a hedge against the kind of stuff we're seeing now. My 401k is tied up in pretty standard government employee retirement funds, and while the pension is a huge comfort, I wanted something completely outside of that system as a supplement.

I'm up here in Albuquerque, and honestly, the cost of living has been climbing steadily. Groceries, gas, you name it, everything feels more expensive. I know some of you guys are all about the quick gains, but for me, this Gold IRA has always been about long-term stability and protecting my purchasing power. I'm not looking to get rich overnight, just trying to make sure I don't get poorer over the next 10-20 years before I retire.

What are everyone else's thoughts on gold as an inflation hedge right now? Are you guys increasing your allocations, or holding steady? I’ve seen my gold account hover around the 70k mark lately, which feels decent given everything going on, but I'm always wondering if I should be doing more. Any specific types of gold or silver that people are leaning into these days for inflation protection? I've mostly stuck to coins and bars, nothing too fancy.

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5 comments

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Best Answer▲ 8 upvotes

timothy_reed💎Premium (500k-1m)

Totally get where you're coming from! I had a similar experience. My dad actually encouraged me to open one up in 2020 when all the COVID stimulus stuff was hitting. Best financial advice he's ever given me, no doubt. It's been pretty comforting to see that part of my portfolio hold strong while other things have been a bit shakier.

Comments (5)

timothy_reed💎Premium (500k-1m)Real Investor•about 2 months ago

sandra_green📊Growing (50-100k)✓ Verified•about 2 months ago

Hey, interesting post! You mentioned putting in a lump sum around 2019. Did you buy physical gold or something like a gold ETF within your IRA?

joseph_harris📊Growing (50-100k)•about 2 months ago

It's interesting to hear your take, and I totally get the appeal of gold as a "safe haven." However, sometimes it feels like the expectation that gold will ALWAYS perfectly track inflation can be a bit overblown.

While it definitely has its moments, historically, there have been periods where inflation spiked and gold's performance was... well, let's just say less stellar than some might assume. It's a great tool, but maybe not the only one for battling inflation.

diane_bailey💰Established (100-250k)Real Investor•about 2 months ago

Hey, glad to hear you're thinking proactively about inflation! It's definitely a hot topic. Great move getting into a Gold IRA back in 2019.

One thing that's super helpful to remember beyond just the inflation hedge is understanding the different types of gold you can hold in an IRA (coins vs. bars, purity requirements, etc.). The IRS has some pretty specific rules. The IRS FAQs on IRAs Investing in Collectibles page is actually a surprisingly good resource for the nitty-gritty details.

donald_nelson💎Premium (500k-1m)Real Investor✓ Verified•about 2 months ago

Totally agree with you here. I got into gold around the same time, maybe late 2018. Had a chunk of change from a bonus and decided to put about $35k of it into a Gold IRA. Honestly, the peace of mind knowing it's there as a hedge is huge, especially with how wonky things have been feeling financially. It's definitely held its own.

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