Questions to Ask Yourself About Precious Metals
While the metals appear to be moving higher again, on a 1-week basis they are all lower. Gold is down a fraction to $2,202, with silver down 2% to $25.00. Platinum is off 4% to $911, while palladium is down 3% to $1,034.
From a year ago today, gold is up 13%, silver is up 8%, platinum is down 7%, and palladium is off 28%.
Some questions to ask yourself before gold include: “Do I want to invest in an asset that goes up while the dollar rises, and even more when the dollar falls?” If your answer is yes, then you should consider gold.
“Do I want to be able to purchase the same amount of goods and services years later when I cash in my investments, as I can today with the cash I have to invest?” Gold has an excellent long-term track record protecting purchasing power, vs other investments. If your answer is “yes”, you should consider adding gold.
“Do I want to increase the overall performance of all my investments?” Studies have shown that the traditional 60/40 portfolio can be improved by becoming a 55/35/10 portfolio, where 10% is gold. The portfolio is less volatile over time, and performs better. If your answer is yes, you should consider adding gold as a portion of your overall portfolio.
