2:36 AM
Aniket Kumar
Gold has been climbing at all levels not seen since the beginning of the financial crisis. It is an interesting asset to monitor and keep an eye on. If you plan to go for gold at this point, or already have, and I was wondering if you live in, here are some thoughts to have gold as an investment in your portfolio.
First, you should not have too much of their capital in gold. Diversification is the key and most of your asset allocation should not be gold, especially if you are a retail investor. This is especially true as we have seen new records broken for the price of gold. Thus, gold investment advice should be taken with a grain of salt.
Many see gold as a hedge against inflation. That's how it has been shown historically anyway. So when there is higher inflation, or an expectation that there will be that gold is going higher.
It has not really been the case in recent years. Most investors saw gold as a safe haven, because there were not many investments that are considered safe after the financial crash. This is partly fueled by inflation, now that we see some, but it was not before.
In any case, investing in gold at this stage is extremely risky, even more than before. So here's my proposal in terms of how I think this will play out.
I do not expect gold to continue to grow or even remain at current levels. I expect a decline in the developed countries are really looking for recovery are felt throughout their economies.
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