The performance of different asset classes has been highly varied this year, with gold emerging as one of the best performers year-to-date. The bull case for gold is clear and there are several reasons why you should consider owning it, although it can be tricky to look at it in a neutral way as people tend to either love it or hate it.
One of the main criticisms of gold is that it doesn't pay a dividend, which may be unacceptable for some people. However, for those who don't trade actively and hold onto it as an investment, gold can be a valuable addition to their portfolio. Gold is often seen as a hedge against inflation and can help with asset diversification. Allocating a portion of your portfolio to gold can offset the underperformance of stocks as it tends to hold its value well.
Furthermore, with a potential economic downturn looming, gold could perform well over the next 12-36 months as it works best when real interest rates are lower. It is worth noting that while silver is more volatile than gold, it has more industrial uses, so it can be a good investment as well. In conclusion, there are compelling reasons to own gold, and investors should consider adding it to their portfolio.
What You’ll Learn:
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Clear reasons why you should own gold.
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How much of your portfolio should be allocated to gold.
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What a gold-friendly environment looks like.
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The difference between gold and gold miner stocks.
Favorite Quote:
“Some people look at gold as a hedge against inflation.” -Serge Berger
