How much should I invest in gold?
Research from the World Gold Council shows that an optimal investment portfolio, which maximises returns and minimises risks, should contain between 5% and 30% of gold for different investors’ risk profiles.
Despite the above, it is recommended that an investor always have at least 10% of his/her investment portfolio invested in gold. We like to refer to this as the “10% Rule.” We believe that one can’t expect to effectively protect one’s investment portfolio against hyper inflation, a weak dollar, etc. if one has less than 10% of one’s portfolio invested in gold, directly or indirectly. Furthermore, don’t be fooled by the naysayers, it is a historic fact that gold is an excellent store of value during adverse economic times, and has saved many investors from financial ruin in the past and is expected to continue to do so. Chances are good that you will thank your lucky stars the day that 10% or more invested in gold save you and your family from financial ruin. Many people believe that they don’t have the money to invest in gold although this is in many instances simply not true. We believe every individual should invest in gold, and that any investment in gold should start with a plan. This is why we at Gold Investment aim to empower investors by giving them access to affordable and flexible investment opportunities in the South African gold market.