Can you retire with only gold?

Only 35% of Americans said they were on track with their retirement savings, according to the 2025 Report on the Economic Well-being of American Households, so it’s no surprise that gold can be an attractive investment.

Gold (GC=F) has been valued for centuries, but is it worth all the shine? The price of gold has skyrocketed in recent years, surpassing $5,000 in March 2026. Many people are considering investing more money in gold than other investment options, especially when planning for retirement.

Although it is possible to retire comfortably by investing solely in gold, it is much more difficult (and requires much more of your own money) than if you were to invest in the stock market.

Read more: Who decides how much gold is worth? How gold prices are determined.

• Gold involves additional costs, including insurance and storage fees.

• Over the long term, the stock market has outperformed gold.

• Experts recommend investing no more than 15% of your portfolio in gold.

There are two main strategies for investing in gold for retirement: purchasing physical gold coins or bars and investing in a gold individual retirement account (IRA).

When it comes to investing in gold, purchasing physical gold is the most common approach. Investors can buy gold coins or bars. These items are tangible and can be kept at home. You don’t have to rely on banks or brokerage accounts – you can literally keep your wealth. And physical gold can act as a hedge against inflation and provide peace of mind.

The downside? Physical gold is at risk of theft and loss. You’ll need to get a strong safe (or pay for professional storage) and take out insurance coverage.

Additionally, you will have to sell your gold during retirement to earn income. Selling gold is not always easy or fast; You have to find a buyer willing to pay your price, which can be a hassle in your golden years.

More information: Is gold a good investment in 2026?

Gold IRAs are self-directed retirement accounts that allow you to invest in alternative assets like precious metals. Through your retirement account, you purchase physical gold, which is managed by an approved custodian and stored in a vault.

Only certain gold products are eligible for gold IRA accounts. All gold must meet purity standards of 0.995.

They are subject to the same tax advantages as traditional Roth or traditional IRAs and are also subject to required minimum distribution (RMD) rules.

While gold IRAs can be attractive, they tend to have high setup fees, custody fees, and ongoing storage costs.

Read more: How Gold IRAs Are Taxed

Gold enthusiasts boast about the precious metal’s stellar performance over the past few decades, but it pales in comparison to the performance of the stock market.

Consider this: From December 1985 to March 2026, the price of gold went from $327 to $5,019. If you were 25 years old and invested $10,000 in gold in December 1985, you would have purchased 30.58 ounces of gold. Now that you are 65 years old, that gold would be worth $153,450.

Sounds great, right? That’s a great return. However, the performance of the stock market refutes these figures.

If you invested $10,000 in the S&P 500 in 1985, your investment would be worth $317,064, more than double the total value of your gold investment.

Even better, if you invested $10,000 in the Nasdaq in 1985, your investment would be worth $688,448, more than four times the value of your gold investment.

Read more: How much gold would a million dollars buy at different times in history?

While the price of gold has increased significantly, you must contribute much more to your retirement to have the same amount of money once you are 65. Investing in stocks does a lot more work for you, so you don’t have to invest as much cash.

Gold certainly had its moments and generally maintained its value even during periods of sharp declines in the stock market. But over the long term, the stock delivered steady, compounding growth.

Gold can play a role in your retirement plan, but there are some pros and cons to consider.

• Provides a hedge against inflation: When inflation rates soar and the purchasing power of the dollar declines, gold can provide some stability.

• Tends to maintain value: Because gold is not directly linked to stock market performance, it tends to maintain its value even in periods of economic decline or uncertainty.

• It is tangible: Unlike stocks or mutual funds, gold is physical. You can see it and hold it in your hand to make it feel more real and safe.

More information: How to invest in gold in 4 steps

• Gold is not liquid: If you own gold and need cash to fund your retirement, you need to find a buyer and sell your holdings. This can be time-consuming and difficult in retirement.

• Does not pay interest or dividends: Many stocks and other investment accounts pay dividends or interest, while gold is stagnant. It produces no income and the only way to use it to fund your retirement is to sell it, which reduces your total retirement fund (particularly during periods when the price of gold drops).

• Doesn’t work as well as stocks: As mentioned above, gold’s performance is positive, but it does not compare to the stock market’s performance in the long term.

Gold can play an important role in your retirement plan, but it should only represent a small portion of your overall investment portfolio. Morningstar investment experts recommend investing no more than 15% of your portfolio in precious metals like gold. The right allocation for you depends on your age, risk tolerance, and financial goals.

No, gold typically underperforms 401(k)s and IRAs in stock market investments. Historically, stocks have provided higher returns than gold over the long term.

Experts suggest investing between 1% and 15% of your portfolio in gold, but that percentage depends on your age and investment goals.

If the price of gold falls after you retire, you may have to sell your gold holdings at a loss, which will reduce your retirement fund and deplete your investment more quickly.