Gold Has Value To You
Gold actually has value to you, but not in the sense that you’re probably thinking. The fact is gold serves an important part to an overall well rounded investment strategy. Gold is a diversifier! Though I don’t know if I’d consider it an investment in the purest sense of the word.You shouldn’t buy gold as an investment however. I lost a client last year who insisted on investing in gold with 25%+ of his portfolio. He sold every equity position he had at the absolute market bottom in 2011 in July. He locked in substantial losses that would have been erased within 6 months (patience my friend…).
Everyone should have some allocation to gold (account size permitting, smaller accounts may not). Most of our clients have from 2% to 5% in diversified commodities. Roughly 20% to 30% of that is in gold and other precious metals.
