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How do gold and silver fit into retirement?
Think of gold and silver as insurance for part of your savings, not the engine. Many planners who include them suggest a small slice, often 5% to 10%.
What a 5% or 10% slice looks like
| Total savings | 5% in metals | 10% in metals |
|---|---|---|
| $250,000 | $12,500 | $25,000 |
| $500,000 | $25,000 | $50,000 |
| $750,000 | $37,500 | $75,000 |
| $1,000,000 | $50,000 | $100,000 |
The rest stays in the stocks, bonds and cash that pay you income and growth.
What gold and silver do well
- They hold value over long stretches. An ounce of gold has kept its buying power over decades, even as the dollar lost most of its.
- They often move differently from stocks. In 2008, when U.S. stocks fell about 37%, gold rose about 5%.
- Nobody else owes you anything. Physical metal doesn't depend on a company or bank staying in business.
What they don't do
- They pay no income. Stocks pay dividends and bonds pay interest. Metal only pays you when you sell it, so it can't fund monthly withdrawals on its own.
- They can go nowhere for decades. Gold hit about $850 an ounce in January 1980 and didn't get back above that until January 2008.
- Silver swings much harder. It has fallen by more than half several times. That makes it a rough fit for money you may need soon.
The costs people miss
- Dealer spreads. You pay above the market price to buy and get less than it when you sell. Our sister site What's My Metal Actually Worth? shows what a dealer is likely to pay for coins and bars, and why.
- Storage and insurance. A home safe, a bank box or a vault all cost something, and homeowner's insurance often covers only a small amount of metal.
- Taxes. In the U.S., gains on physical gold and silver held over a year are taxed as collectibles, at up to 28%. That's higher than the top rate on most stocks.
What about a gold IRA?
You can hold certain gold and silver bullion in a self-directed IRA, but the metal must be kept by an approved custodian, not at home. Setup, storage and dealer fees are usually higher than a regular IRA. This is also an area known for high-pressure sales calls. Take your time, compare fees in writing, and never feel rushed.
How to fit it into your plan
- Cover the basics first. An emergency fund and enough income to pay your bills come before metal.
- Decide your slice ahead of time, and stick to it when prices make headlines.
- Know what you own. Keep a list of every coin and bar, what you paid and what it's worth today. We make a Precious Metals Stack Tracker spreadsheet with live prices for this.
- Plan how you'd sell. Know which dealers buy what you hold, and what they pay, before you need the money.
See how your whole plan holds up. Our calculator shows how long your savings last with your spending, Social Security and investment mix.
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- The 4% rule, explained simplyWhat it is, where it comes from, and its limits.
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- How do gold and silver fit into retirement?How much people hold, the pros, cons and costs.