Should You Put Your Entire IRA in Gold?
Putting an entire IRA into one asset—gold included—is a concentration decision. Gold may diversify a portfolio, but replacing all other assets with bullion creates new risks.
Key points
- Gold can decline substantially.
- Bullion produces no dividends or interest.
- Concentration removes exposure to other return sources.
- Physical IRA costs continue regardless of performance.
- Liquidity needs can force sales at unfavorable prices.
Diversification is two-sided
Adding an asset can diversify a portfolio; replacing every other asset with it can eliminate diversification. Gold has different drivers from stocks and bonds, but different does not mean riskless.
Income needs
If retirement spending depends on portfolio income, non-yielding bullion may require periodic sales to generate cash. Those sales occur at whatever market price exists at the time.
Sizing
There is no universally correct gold allocation. Any allocation should be evaluated against your full financial plan rather than a dealer's sales target.
Where to go next
Continue with the Alternatives resource center, or review our Gold IRA company due-diligence framework.