Read This If You’re Thinking About Investing In Gold
Investing in gold has always said to be a great way to diversify an investment portfolio and mitigate risk. While I do agree with that statement, we live in a world these days that is a little more complex than that. For starters, if you look at the price of gold over the last decade, it is hard to tell if you are buying high or low.
It could be argued that you are buying low because the price topped out a few years back at around $1900 an ounce. That is more than double what it was prior to the recession. I suppose a current price of $1300 or so would mean that you are buying low if we were to hit another recession. What’s my take? I would honestly rather buy gold mining stocks that pay dividends, but I have found those to be quite risky. What would I do instead?
My take is I would go ahead and invest in actual gold bullion. I believe at the current UK gold price per gram, gold at least holds. However, I would only allocate 5 to 10 percent of the money in my investment portfolio for actual gold. Even if the gold price dropped for awhile from $1300, that gives you the chance to average down, and it shouldn’t drop much if history has a say.
I would think if anything, moving forward, the economy will dictate a rise in gold prices again. As a matter of fact, the way people move the markets these days, it could be a rather drastic rise in price. To top it all off, it could be based on emotion and not an actual downside to the market, which means you would be in a win-win situation. Usually, investing in gold helps balance a portfolio and offset losses during a down market, but you could get double gains these days.