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By Austin DeNoce, Benzinga

2024 has been a good year for the stock market. To date, the S&P 500 has risen by over 20 . While economic numbers have been positive and inflation seems to be in check for the time being - even in the face of affordability and cost of living challenges - the world has continued to be an uneasy place. In addition to the wars in the Middle East and Eastern Europe, there are more than 90 other countries fighting around the worl right now - causing another asset class to outperform even the S&P 500.

Challenges Ahead For Investors In 2025

The last year has been quite turbulent geopolitically. So far, that hasn't seemed to affect stock market performance. Nevertheless, for those investing for retirement, stocks haven't necessarily been the best asset class to own.

In fact, gold is up about 29.5 , outperforming the S&P 500 over the same time frame. A big part of its performance is what's going on in the rest of the world. The Market Realist's Annie Gilro notes that because of its safe haven appeal, investors are attracted "to gold and other precious metals in [times] of heightened geopolitical tensions and war."

While regional conflicts may pose challenges to stocks in the year ahead, they're not the only factors that could place downward pressure on stocks. David Roche, President and Global Strategist at investment research firm Independent Strategy, says that investors should expect a bear market in 202 .

That could present another compelling reason for retirement investors to consider owning gold. According to Bob Iaccino of the CME Group (NASDAQ: CME), "gold has long been viewed as a steadfast protector of wealth, often becoming attractive for investors during turbulent economic times."

The Past Year Was Good For Both Stocks And Gold - But What If Markets Falter?

The Global Peace Index 202 published by the Institute for Economics & Peace warns that "the world is at a crossroads...without a concerted effort, there is a risk of a surge in major conflicts."

If skirmishes around the world persist or escalate, they could potentially impact the U.S. stock market. If that happens, is gold likely to maintain its luster? History offers a guide. And interestingly, when stocks have had their worst performance, gold has historically held up quite well.

In 1974 and 2008, the two worst years for the stock market in the last half-century, stocks were down nearly 50 and about 38.5 , respectively. In those same two bad years for stocks, the average price of gold ros some 58% and 25%, respectively.

Should Retirement Investors Own Gold?

Contributing to an Individual Retirement Account (IRA) can help investors save for the long term. According to the Investment Company Institut ,"IRA balances tend to rise with length of ownership."

In other words, the longer you own an IRA, the higher its balance tends to be. According to the CFA Institute, one way to make sure that growing balance is in line with your objectives is to mix up the types of investment you own.

The CFA Institute says that allocating assets away from common stocks can reduce ris in investment accounts like an IRA. As such, according to experts at Preserve Gol , investors ought to consider including gold among their long-term retirement assets.

The Internal Revenue Service even has guideline about how an investor can own gold in their retirement accounts.

Given the current turmoil around the world and the uncertainty about how that might impact the performance of common stocks in 2025, investors saving for retirement might explore how adding gold to their IRAs could provide a store of value for their retirement nest eggs.

Finding The Right Partner

For those considering an investment in gold, selecting a reputable and experienced partner is extremely important. Preserve Gold is a North American precious metals firm that stresses its commitment to client service. With a team that has decades of industry experience, Preserve Gold offers personalized guidance to help investors explore their options to help protect their wealth through gold.

Whether through a Precious Metals IRA or direct purchases, Preserve Gold says it values transparency and integrity, offering services such as secure shipping and hassle-free buyback options to support investors in managing their gold investments with confidence.

Get your hands on gold with a purchase for home deliveryy or in an IRA with Preserve Gold!

Featured photo by PublicDomainPicture from Pixaba .

Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

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