Gold News

Good to have 'part of portfolio in gold'

Financial experts have identified gold as an investment of 'integrity' at times of market woes, but said that bullion investors knew they could be in for a rocky ride.

Bloomsbury Financial Planning claimed that there were strong arguments for holding some form of gold investment in a portfolio, highlighting Gold Bullion Securities as a fully tradable option.

Market bulls who buy gold do so on the belief that currencies may be over-valued and subject to a subsequent drop, said the group, with those gambling on gold often reaping rich rewards.

Jason Butler, a certified financial planner with Bloomsbury Financial Planning, said: "There is a compelling argument for including some kind of gold exposure in your portfolio – if you believe that the governments have printed money willy-nilly and created inflationary problems."

However, he cautioned: "If you feel that having a store of value is important and relevant, then my advice would be: I wouldn't hold more than 20 per cent of your portfolio in gold."

Gold prices have surged dramatically since mid-August, with bullish investors backing the metal and driving its price up as storm clouds gathered over sub-prime mortgage defaults and the wider US economy.


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