Golden Pension

Pension funds, investors, individuals and even governments are buying gold, and fears of a collapsing global economy are growing. 

Maybe you're thinking about turning the money you're saving for retirement into gold. In these uncertain times, gold could be a good retirement base. In China, for example, the government has been recommending the possession of gold for some time. The main argument for investing in gold is the protection against inflation. 

While the once strong Dollar and Euro currencies are faltering, the skyrocketing US debt burden is only increasing and the Euro-zone is desperately trying to keep its weak southern European countries afloat. the gold price is recording new records year after year. In addition, less gold is being mined worldwide, while the demand for it is growing.

As a private saver or investor, you have the freedom to arrange your pension yourself. When you participate in a pension fund, you are dependent on the strategies of the fund management. 

Sure of your pension?

The Netherlands is ageing at a rapid pace and that costs money. Workers now pay for pensioners' retirement provision. Because there are fewer workers and more pensioners, it is becoming increasingly difficult to continue to pay pensions.

The pension contributions of pension fund members are often invested in government bonds. Until recently, it was unthinkable that government bonds would lose value. However, these investments also appear to be uncertain, as the weak Eurozone countries Greece and Spain now have to be kept afloat with European emergency funds. 

As a result, the average funding ratio of Dutch pension funds is under severe pressure. It remains to be seen whether pension funds will be able to meet their future obligations. With the decrease, the pension funds will move further away from the required minimum funding ratio of 105 percent. A healthy pension has a funding ratio of 125 percent.

Gold and pension funds

The DNB reports that the portfolio of an average pension fund consists of only 2.7% of commodity investments, of which no more than 5% is invested in gold. In total, a pension fund's gold investment accounts for only 0.14% of its total assets. 

The Stichting 'Pensioenfonds Vereenigde Glasfabrieken', with a capital of three hundred million euros, has invested up to 13% of its reserves in gold in recent years. In hindsight, this was a golden opportunity, but in 2011 the Dutch Central Bank (DNB) summoned the pension fund to sell most of the gold it had bought. According to DNB, investments in government bonds offer more security and the position in gold had to be reduced to 1% to 3%. If you build up a gold pension under your own management, you have nothing to do with this kind of craziness. 

Build your own golden pension

In this period of financial and economic crisis, the accrual and payment of a solid pension is no longer self-evident due to an ageing population and disappointing investment results. The pension funds are shifting more and more guarantees and placing the responsibility for your pension on you. Therefore, make sure you have a safe and stable asset in your hands, a golden pension.

Would you like to receive more information about the purchase of precious metals? 

We will be happy to answer your questions by e-mail info@hollandgold.nl or by phone +31(0)88 - 4688 400