Retirement planning is never a static endeavor. Your plans need to change with your life, your income, the performance of your investments, and the evolution of your family. They may also have to change due to circumstances entirely out of your hands, such as a changing economy, market innovation, and geopolitical issues. It’s a complicated world out there, and your retirement plans may need to adapt.
Bullion: A Stabilizing Asset
Investing operates on one fairly simple rule: the higher the risk you’re willing to take with your money, the more you can make – and the more likely it is that you can lose your principal. The younger you are, the more risk tolerance you have because you have time for your investments to recover. The closer you get to retirement, the more stability you need out of your investments. The more uncertain the market becomes, the more you may want to hedge your bets by investing in a counterbalance to your riskier assets.
One way you can achieve that stability is with bullion. Bullion metals are high-purity, investment-grade products made from precious metals like gold or silver. Investment-grade products typically include coins and bars that can be easily purchased from bullion dealers like Global Bullion Suppliers.
Why does gold belong in your retirement fund? It has historically been used as a hedge against risk and global uncertainty and a way to protect your savings from inflation. The asset has been historically resilient during periods of recession, and its value has, in the past, been largely unrelated to stock market results.
In practice, this means that your bullion assets should be largely unaffected during stock market crashes, giving you a source of stability when your other investments may be going through a downturn.
Growing Uncertainty: Where Is the Economy Going?
A new report issued in January 2025 by the UN suggests that global economic growth is being restrained by rising geopolitical uncertainty and trade tensions.
There are a number of positive economic indicators that should spur growth around the world. Inflation has finally taken a back seat in the economic conversation. Interest rates are falling around the world, freeing up the money supply and making it easier to borrow.
Unfortunately, the threat of potential trade wars with the new U.S. administration has created an environment of uncertainty for industry. Protectionist economic policies have the potential to interrupt global trade and restrain growth.
Climate change is another important part of the conversation about unpredictability and one that hits closer to home. The damage caused by the Los Angeles wildfires is estimated to be as high as $250 billion, and it’s a cost that’s going to be carried by everyone.
As disastrous climate events become more common and economies around the globe struggle to recover from recurring multi-billion-dollar catastrophes, economic growth may suffer. In some cases, regions may never bounce back from events like these as countries run out of resources to rebuild.
You need to have confidence in your retirement fund. Including bullion in your investments is an effective way to diversify and find an element of stability.
