EPS 20 - Precious Metals 101: Should You Put Gold in Your Retirement?

In this episode, Jerry tackles the ever-present ads urging people to “buy gold for your IRA” and breaks down whether that’s really a good idea. He explains the different ways investors can gain exposure to gold and other precious metals—from physical gold bars and coins to mutual funds and ETFs—and highlights the pros and cons of each approach.Key points include:Physical gold in IRAs: Allowed under IRS rules, but it must be stored with a custodian (not at home), and storage carries added costs.Risks of holding gold: While gold can act as a hedge against inflation and is uncorrelated with stocks, it’s also volatile and comes with liquidity and security challenges.Portfolio role: Experts generally suggest keeping no more than 20–30% of a portfolio in precious metals to avoid concentration risk.Alternative options: Mutual funds and ETFs offer easier diversification, lower storage hassles, and professional management, though at the cost of higher expense ratios (for mutual funds) or trading fees (for ETFs).Outside vs. inside your IRA: Jerry suggests that if you’re drawn to the beauty of gold coins or bullion, it’s probably best to hold those outside of your IRA, where you can enjoy them tangibly rather than treating them strictly as retirement assets.Ultimately, gold can be a useful diversifier, but it’s not a “set it and forget it” solution—rebalancing and risk tolerance remain key.💬 Have a question or comment? Contact Jerry here