The following is a guest post. Enjoy!
Performance of Gold Investments
What Will the Future Hold for Gold Investing?
However, American jobless numbers are beginning to decline (or at least stabilize), which means gold futures could start to decline. However, if other countries continue to suffer from the recession, gold will continue to be a strong and potentially high-yield investment opportunity. The most difficult determination will be when gold has hit its peak value.
How about you all? Is gold currently incorporated as a part of your investing strategy? Why or why not? What’s the best way you’ve found to invest in gold?
Do you think gold will continue to go up in price?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article:
- Fairly frequently, I get asked about my thoughts about using gold as an investment. Unfortunately, I have very little expertise/knowledge about gold, so I cannot provide very much guided assistance. However, it’s good to have another post here to bring this topic to the forefront!
- @ The future direction of gold –
- I do know that gold has been an investment of choice in the past few years since the recession in 2008-2009. As such, the prices of gold have increased drastically.
- Because of this, I would be very careful about placing a lot of money in to gold due to risk of buying in at the “top” of the upward price swing.
- @ Whether or not gold is a safe and/or good investment + how gold should/should not be incorporated in to one’s investing strategy –
- Personally, I do not have gold incorporated as part of my investing strategy.
- However, is gold a good thing to have in one’s investment mix? My answer is “probably,” however, I would need to do some more research about this to tell for certain.
- If I did, I would either use ETFs or precious metal index mutual funds to do this, as opposed to buying physical metal holdings.
- Additionally, I would ensure that only a small proportion of my total investment holdings were placed in gold/precious metals.
- One very attractive characteristic about precious metals is that they have relatively low correlation coefficients with the returns of normal equity investments. As such, the addition of precious metals to my investment portfolio would give further diversification and help shifting the efficient frontier for risk/return trade-off.
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