Invest in Gold? Absolutely. But … How Much?
There is a short answer to this question: at least 10% of your investment portfolio.
That is what Goldbroker recommends: the ownership of gold and other precious metals in physical form and in private vaults outside the banking system, constituting a minimum of 10% of your financial worth. This investment will always have instant liquidity no matter what economic crisis arises that prevents you from accessing other assets. There is no better avenue of wealth preservation.
There are, of course, other opinions and considerations for your specific situation so, please, read on.
One of these opinions is the four-part approach: gold, bonds, equities and cash at levels of 25% each. It came as a shock, though, when a private survey of American bullion investors revealed that 30% of them were allocating 80% of their wealth management portfolio to gold.
Such decisions are not made in a vacuum. What’s going on in the world around you can be just as important as what is happening in your life and finances. For instance, back in 2002, the world was in a government-deficit and runaway bank-credit crisis. At that time, Egon von Greyerz (a board member of Goldbroker.com) advised his investment customers to put up to 50% of their assets into physical gold. It is a testament to just how bad those days were.
But Mr. von Greyerz, who is recognized as one of the world’s foremost gold investment experts, sees the situation as a lot worse today. Wealth protection is more critical than ever. Things can change swiftly (and the markets with them) in a matter of heartbeats.
He says, “Many investors ask what percentage of their financial assets should be in precious metals. Some investors who are really concerned about the financial system have 60-100% in gold, together with some silver. Having even 10% of your assets in gold will ensure the safety of your portfolio. Investors must themselves decide what percentage they feel comfortable with. In our view, the investment in metals should be sufficient to fall back on if there is a crisis in the financial system which prevents access to other investments or makes it impossible to raise cash from other assets.
What is important to remember is that gold and silver is money and instant liquidity. Throughout history, in every country where there has been a serious financial crisis, gold and silver have always functioned as money or barter.”