First, a legal disclaimer. Your decisions are your decisions — I’m writing the following not as your personal investment advisor, but as an investment publisher exercising his right to free speech. Every investment known to mankind has risks, which means you could very well do what I tell you to do, and then lose money.
There’s no such thing as a sure thing. We have told you that purchasing gold stocks, gold mutual funds, and gold bullion coins are the best ways to invest in gold. Gold bullion coins provide financial security, while gold stocks and gold mutual funds offer ways for investors to make a profit.
How Much Gold Should You Buy?
When it comes to investing in gold, remember that gold is a hedge investment for the most part. It’s fantastic for making sure your portfolio doesn’t sink during a recession, political turmoil, inflation, or some other crisis. It’s for security.
This means you shouldn’t put your entire portfolio into gold — that would be unwise. There are a lot of numbers that roll around from major investors and economists about what the ideal percentage of your portfolio should be dedicated to gold holdings.
I personally try to keep my gold holdings between 10-15% of my total assets. Doing this helps me maintain extreme gold stabilization, while also not putting all your eggs in one basket.
I find that a 5% holding of gold coins, 10% gold mutual funds, a good 70% high-yield dividend stocks, mixed with 15% other speculative investments is a good mixture of income and risk that I feel comfortable with when it comes to my personal stock portfolio. Of course, that’s just my traditional portfolio — this doesn’t include start-up businesses, consulting, real estate, or private shareholder investments.
So what should your portfolio be? It needs to account for the income you want, with a risk level you feel comfortable taking.
Next Part: Practical Recommendations