You Don’t Have A Diversified Portfolio Without Gold
Your portfolio cannot be truly diversified without gold, silver, or other precious metals. That isn’t hyperbole or an exaggeration, to be truly diversified a portion of your assets must be in an alternative investment.
Gold offers you true protection from the stock, bond and equity markets
The goal of every investor seeking balance is a diversified portfolio. The reason you want your portfolio to be diversified is because you don’t want all your eggs in one basket. By spreading around your assets, you are less likely to be catastrophically impacted in the even of a financial collapse.
From an early age, investors are told to spread their assets around different sectors and industries like energy, pharmaceuticals, and technology. In addition, traditional portfolio diversification will include bonds, mutual funds, and even real estate. The problem is when you get to ground level on each of these investments, they all impact one another.
During the great depression, the recession in the early 80s, and in 2008, every sector was hit hard. Regardless of what industry you were invested in, your portfolio likely took a major hit. Even real estate which is always said to be stable saw property values tumble. For those who were young and had resources this presented a great opportunity to buy low, but for those nearing retirement, it was devastating.
Gold offers stability when the markets do not
Gold offers true diversification because it is not tied to the markets. Gold often performs it’s best when the markets are at their worst and offers a true hedge. Even major countries around the world hold gold as a hedge against their own economic practices (read here about the top countries invested in gold). Depending on where you are in your investment journey, the amount that you should have invested in Gold varies. However, one thing is clear, if you want to truly be diversified you must hold gold, silver, or another ira approved precious metal in your portfolio.