Should Retirees Buy Gold? 5 Reasons to Think Twice Before You Do 

Confessions of a Financial Advisor

The Client Who Bought $100,000 in Gold

When Emotion Overrides Logic

Sam came in for a review and sat down, his head in his hands. It was clear something had changed since our last meeting.  

“I made an investment,” he said quietly, “and I already regret it.” 

I leaned forward. “Tell me more.” 

“Well,” he began, “I was watching an infomercial, and I don’t know what happened. The emotion… it just took over. I went online and made a rash decision.” 

I nodded. “What did you invest in?” 

He looked up. “I bought a lot of gold.” 

I stayed calm. “How much gold are we talking about?” 

“$100,000.” 

I’ve seen everything, and it takes a lot to shock me. He handed me the particulars and I did a double take. He’d paid over a double-digit commission to purchase this gold and store it. 

The Number One Principle When Buying Gold 

Treat Gold as a Storehouse of Value — Not an Investment

I get this question all the time: “Andrew, should I buy gold?” 

Here’s what I tell every client who’s passionate about gold – or bourbon, fine art, crypto, or any speculative asset: Go in with your eyes wide open. Know what you’re getting into. 

And most importantly, set clear boundaries. 

Never put more than 1-3% of your net worth in a speculative storehouse of value. 

Notice the wording I’m using here: storehouse of value. 

What you haven’t heard me call it is an investment—and that’s intentional. 

An investment generates dividends and income over time. It pays you back. It works for you. It appreciates and produces cash flow. 

But gold? Gold doesn’t do that. 

Gold just sits there until someone’s willing to take it off your hands at a higher price. 

Think of it like musical chairs. It only becomes more valuable when the next person takes your place. 

Compare that with real estate. You’re not just sitting by, hoping the land becomes worth more. It’s a productive asset. You can farm it. You can lease it. You can extract oil, grow timber, and build rental units so it generates value beyond appreciation. In short: Real estate works for you. 

Gold doesn’t produce. 
Gold doesn’t pay. 
Gold just waits.  

Its value only rises if someone is willing to pay more for it later. 

So if you’re going to buy gold, know what it is—and what it isn’t. 

Don’t mistake speculation for investing. 

5 Reasons Retirees Should Think Twice Before Buying Gold

1. It’s Unregulated and Often Misrepresented

The gold market is largely unregulated, which opens the door to aggressive and sometimes manipulative sales tactics.  

Many gold sellers don’t have a fiduciary duty to act in your best interest, and their recommendations can be more about their commissions than your goals. 

2. High Fees and Hidden Commissions

Fees and commissions on physical gold can be shockingly high, sometimes in the double digits.  

These costs are often buried in the fine print, leading investors to lose a significant portion of their investment without realizing it. 

3. It’s Not “Doomsday Insurance”

Some argue that gold is the perfect hedge for the end of the world. But if we’re truly facing a societal collapse, I’d rather have a goat I can milk than a bar of gold I can’t eat or trade easily.  

Gold doesn’t feed you, shelter you, or generate anything. It’s not as useful in a real crisis as people like to believe. 

4. Security and Safety Risks

Storing physical gold securely is no small task. People have been burglarized, kidnapped, held hostage—or worse—over gold.  

The risk of physical harm or theft is real and rarely discussed in glossy gold ads. 

5. It Doesn’t Produce Income

Gold doesn’t pay you while you own it. There are no dividends, no interest, and no cash flow—just the hope that someone will buy it from you later at a higher price.

And for retirees who rely on steady, predictable income to fund day-to-day living, that distinction matters. Which leads to the bigger question: what role does gold really play in a retirement plan—and what does it not do?

The Truth About Gold for Retirees

For retirees or anyone seeking steady income, gold is not a strategy, it’s speculation.  

As Warren Buffett once said about gold, “Gold is a way of going long on fear . . . And if they become more afraid, you make money, if they become less afraid, you lose money. But the gold itself doesn’t produce anything.” 

At the end of the day, gold is not an ideal investment for retirees because retirees need steady income for day-to-day living. 

Yes, gold has inflation protection and a hedge against traditional asset classes like the stock market. But there are many other asset classes that do the same—and do it better.  

Let me give you a quick history lesson. 

Two thousand years ago, a bar of gold would’ve bought me a fine suit of Roman armor. Today, that same gold bar would buy me a well-tailored, multi-thousand-dollar suit. 

Gold holds its value—that’s the point. 

But if I had bought a piece of property 2,000 years ago or shares in a company that somehow lasted that long and if those assets were managed wisely, I’d be far better off owning the property or the business. 

Because while gold preserves wealth, productive assets grow it. 

The Smart Way to Approach Speculative Investments

Speculative assets aren’t automatically bad, but they require extra care in retirement. The key is knowing where they fit in your plan and how much risk you can take without putting your income or peace of mind at risk.

Know What You’re Buying and Why

Before investing in gold, crypto, or other alternatives, ask one simple question: What role does this play in my financial plan?
If it’s not clearly tied to your goals, income needs, or diversification strategy, it’s time to slow down.

Speculation should never replace a solid retirement income plan. It belongs on the sidelines, not at the center.

Set Limits and Stick to Them

One of the biggest mistakes retirees make is letting speculative investments grow beyond their original purpose. That’s why I encourage firm boundaries, typically no more than 1 to 3 percent of net worth, with regular rebalancing to keep emotions in check.

Clear limits help prevent small bets from becoming costly mistakes.

Plan First, Emotion Second

Speculative investments are often sold using fear or urgency. Those conditions rarely lead to good decisions.

When choices are made calmly and within a long-term plan, regret is far less likely.

And that brings us to the bigger truth about gold for retirees.

Final Thoughts: Don’t Chase Gold, Build a Plan

Sam’s story didn’t end in disaster—but it easily could have.

We worked together to unwind his gold position gradually, taking a measured, thoughtful approach rather than reacting emotionally a second time. Over time, we were able to reinvest those proceeds into assets that better aligned with his long-term goals and income needs. It wasn’t perfect, but it was fixable.

What stuck with me most wasn’t the gold itself. It was the realization that a single emotional decision—made without guidance—cost him unnecessary fees, stress, and regret. And it didn’t have to happen.

Gold may preserve wealth, but it doesn’t grow it. And for retirees who need dependable income and clarity, speculation is rarely the answer.

At SWAN Capital, our job isn’t to talk you into or out of any one asset. It’s to help you understand how each decision fits into the bigger picture—so your money works for you, not against you.

Before you invest a sizable amount in gold—or any speculative asset—let’s talk first. One conversation could save you time, money, and a lot of unnecessary worry.

Because retirement isn’t about chasing shiny objects.
It’s about sleeping well at night, knowing you have a plan you can trust.

📅 Schedule your complimentary retirement review today.

COVERING OUR TAIL FEATHERS 

Welcome to Swan Capital, LLC (“SWAN”), your friendly neighborhood Registered Investment Adviser (“RIA”). Now, while we may have a fancy title, remember that our registration doesn’t guarantee we’re flying high above the rest. This communication hasn’t been blessed or verified by the United States Securities and Exchange Commission (SEC) or any state securities authority. At SWAN, we believe in giving you personalized investment advice as unique as a swan’s graceful glide. We work with clients in their own states, making sure to play by all the regulatory rules or find the right exceptions. But here’s the scoop: all investments come with risks—like a wild swim in the pond—so no investment strategy can promise profits or protect you from the occasional splashdown. Just remember, past performance is like a cozy old story; it might be nice to reminisce about, but it doesn’t promise what’s coming next. 

SWAN Capital, LLC is an independent firm and is not affiliated with, endorsed by, or sponsored by the Federal Employee Retirement System (FERS) or any government agency. 

Thanks for gliding along with us at SWAN! We’re here to help you soar to new financial heights while ensuring you can truly Sleep Well At Night!