There is without question a very strong case to be made about why you need to have physical gold as part of your portfolio. This asset class can not only potentially see significant appreciation in value, but may also provide an important hedge against numerous economic and geopolitical issues such as inflation, deflation, a weaker dollar and more.
Perhaps the more important question to be asking is not if you should incorporate gold into your investment strategy, but rather how much gold should you buy and hold.
Of course, the answer to this question may differ from investor to investor. There are, however, numerous issues to consider when deciding how much of your portfolio to allocate into physical gold. Below are a few issues to ponder:
What if the dollar continues to decline? Gold and the dollar tend to exhibit a correlation because the metal is dollar-denominated. This means that when the dollar declines, gold often goes up. When the dollar climbs, gold prices may fall. It’s no secret that the dollar has been losing value for decades. A simple way to put this into perspective is: What if the prices of all your current expenses were to double? What if a dollar now is worth only $.50 in the coming decades?
What if the stock market crashes again? The most recent financial crisis of 2008-2009 saw the stock market lose half its value. The market has been running higher for a decade since that time, but at some point the bull market will once again lose steam and stocks will start to head lower. What if the stock market were to lose half or more of its value again? What if all of the gains seen over the last several years were wiped out and then some? How would your portfolio look?
What if sovereign debt continues to spiral out of control? The issue of sovereign debt has been a big one in recent years. Look at what happened in Greece, for a quick example. Greece was unable to meet its obligations, which eventually led to capital controls being implemented. Imagine, for a moment, trying to pull YOUR money from a bank, but being denied. Or what if there was a run on your bank? Debt can be kicked down the road (as it has been for years now) but at some point will need to be repaid.
If you examine these potential scenarios, we think you will find that an appropriate allocation into physical gold may be much more than initially anticipated.
Whatever you decide, the time to begin building an allocation in this key asset class is now. The wheels on the above are already in motion. The dollar is already declining, stocks could crash again any day now, and debt is at record levels.
Don’t wait until your dollars to buy even less, or for the next major stock crash to erase billions in investor value. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to buy this key asset class using your IRA account. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, correlation, deflation, dollar, gold, Greece, inflation, sovereign debt