Invest in Gold. Still a Smart Move for Your Portfolio
Wow,
another reminder to invest in gold! Debka.com is reporting that India
will use gold to buy oil from Iran. India spends around $12 billion
dollars a year to buy oil from Iran. China is expected to use gold as
the unit of currency to buy oil from Iran as well.
So what does
that mean? India and China have completely lost faith in the dollar and
the euro. India and China are growing faster than the U.S. and are the
engines of this new global economy. They have way more influence in the
global economy than they did just a few years ago.
As Bob Dylan
would say, "the times they are a changing." You may want to invest in
gold for your investment portfolio and if you already own gold, you may
want to discuss this with your financial advisor. Most financial
advisors recommend an allocation between 5-15% of gold. An easy way to
invest in gold is to buy it through an exchanged traded fund. Go here
for more details. http://www.spdrgoldshares.com/
What are the reasons to invest in gold? (or buy more)
* You think the dollar will continue to devalue.
* You are concerned about the U.S. printing money to get out of recession/slow growth.
* You are concerned that inflation is going to come back big time.
* You are worried that Greece will default or that things in Europe will get worse.
* You think there is a chance that the euro will devalue more or
just go away. You are also concerned that the Europeans will print money
to get out of their own recession.
As I write this, gold is at
$1,665 an ounce. It has been up 10 years in a row. So, you need to ask
yourself how much of this negative news in the world is already factored
into gold stocks? That means you may be buying gold at a high. If you
think there is more negative news to follow, then you need to invest in
gold.
Oh, and one more thing about whether to invest in gold.
Historically, gold has not been correlated to stocks. In other words,
whatever has happened to stocks has had little impact on the price of
gold.
Keep in mind that this is general advice. You need to
understand your tolerance for risk. Gold should not be the only
investment in your portfolio. Gold can go down and you can lose money.
Use it as a hedge against your other investments.
Justin Krane is a certified financial planner who has helped
countless entrepreneurs create a bigger vision for their businesses by
showing them how to identify and meet goals for increasing revenue. Go
now to http://kranefinancialsolutions.com to get your free financial planning toolkit and you'll also receive a bonus audio CD on increasing your business revenue.
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