Gold Fever Strikes: Should Feds Buy In Or Sit Tight?

Gold has long been viewed as a “safe haven” during times of uncertainty.

And with inflation lingering, geopolitical tensions rising, and interest rate speculation in the air, it’s no surprise gold has caught the eye of many investors.

But before jumping on the bandwagon, it’s worth stepping back and asking a critical question…

Is gold a smart addition to your retirement strategy — or just a glittering distraction?

Gold Is High — Not Necessarily Right

Gold prices are well elevated into all-time highs. That makes it one of the worst times to jump in for new buyers.

Much like real estate or tech stocks during a bubble, buying gold when headlines are hyping it up often means you’re paying a premium driven by emotion — not fundamentals.

Historically, gold has performed well during crisis moments, but has also seen long stretches of underperformance. Especially when inflation cools or interest rates rise.

So, if you’re buying gold now, you may be buying at the peak.

Alternative Inflation Hedges

Many are drawn to gold as a hedge against inflation, but it’s not the only option.

Within the TSP, the G Fund provides principal protection and adjusts with interest rates.

For those investing outside the TSP, Treasury Inflation-Protected Securities (TIPS) or diversified funds with inflation-hedged strategies may offer a more stable approach without the volatility of gold.

If you’re absolutely set on having gold in your portfolio, financial planners often recommend keeping it limited — usually no more than 5–10% of your total retirement assets.

And be careful with how you invest:

• Avoid physical gold unless you understand the costs and security involved.

• ETFs or mutual funds that track gold prices offer better liquidity and lower friction.

• Be wary of high-fee products or aggressive sales pitches promising gold as the only secret to riches.

Final Word

Gold can serve a purpose, but that purpose isn’t to replace your long-term strategy.

As tempting as it may be to chase the glitter, retirement success comes from discipline, not headlines.

If you’re not sure where gold fits into your retirement picture, now’s a good time to review your overall goals, risk tolerance, and withdrawal needs.

Best,
—FWR