30% Gold Investment "Needed to Defend Your Portfolio"

PRIVATE SAVERS should be allocating 10-30% of their portfolio to physical Gold Investment, claims a Swiss fund manager, just to defend its overall value.

"The purchasing power of money is being totally destroyed," Swiss Asia Capital's Jurg Kiener todl CNBC at the weekend, pointing to a 30% loss in the US Dollar since the Federal Reserve began quantitative easing.

"So if you lose 30% within a short period, a 30% of something which preserves your purchasing power is actually equalizing your losses on the rest of your portfolio."

Gold Investment experts have previously said a 5-10% allocation to physical bullion is enough to diversify risk. Across the longer term, gold tends to move independently of stock markets, bond prices, and economic performance.

In its 2010 report Gold: Hedging Against Tail Risk, the World Gold Council found that Gold Investment allocations between 2.3% and 9.0% reduced overall risk in a range of large, widely diversified institutional portfolios.

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