Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to fall. Although the price of gold may be volatile in the short term, it has always maintained its value over the long term. Not surprisingly, some older adults are considering options such as reverse mortgages, refinancing with cash out and other methods to help make ends meet. Buying gold may be an option worth exploring, as gold has historically been a solid hedge against inflation.
When the cost of living increases, the price of gold also tends to rise. The point here is that gold isn't always a good investment. The best time to invest in almost any asset is when there is negative sentiment and the asset is cheap, providing substantial upward potential when it returns to favor, as stated above.