If Social Security Fails, Will Gold Coins Protect Your Retirement Plans?

As if we needed a bombshell dropped on us today - the New York Times just reported that Social Security is operating in the red 6 years ahead of schedule.That is to say, Social Security is now paying out more in benefits than it is receiving through payroll taxes.According to the article, this was not expected to occur till 2016.However, that number was based on projections of 8.2% unemployment not the 10% number we flirt with every week.

Does this mean Social Security is broke?In the context of this article, not yet! The fund itself is said to be solvent through year 2037, but if they were wrong about the cash flow situation, then they have to be wrong about the projected date of insolvency.

Once again, this is just further proof that we have to take responsibility for the solvency of our own savings and retirement accounts.For many, social security is a last defense if pensions disappear, stocks falter and bonds default.Every day the need to diversify with gold or other precious metals becomes more obvious.

Gold is still a hedge against inflation, it's never been worth zero and it's still a great portfolio diversification tool.Think of it as nuclear protection.As long as you don't need it, life is good.But, in the event of retirement disaster, he who holds the gold has the best chance of survival.

And make no mistake, this is not just a domestic concern.It's a global concern.Take China for example. They have quietly doubled their own gold reserves, started selling dollar denominated reserves back into the marketplace and have instructed all of their citizens to own gold coins.Globally, gold supply and demand trends are already causing periodic shortages of coins like American Gold Eagles.Even the supply of American Eagle Silver Coins are feeling the pinch.

So, if you think Social Security will be your last line of defense against retirement poverty, you might want to rethink your own personal gold recommendations for your savings and retirement accounts.