Asset Diversification with Gold

Asset Diversification with Gold

Traditionally gold investments have been seen as a hedge against inflation, and most people still view investing and trading in gold this way. But there are other motivations as well. People like many things about this metal and asset diversification with gold is becoming more popular than ever.


Gold is a real asset

One of the great appeals of gold is that it is a physical asset. Even if you buy it as part of your IRA, you own a physical object, rather than a piece of paper that represents a company. For this reason many people like to have gold in about 10% of their portfolio, with other precious metals representing about 5% of their portfolio.


There is a peace of mind in owning precious metals that are tangible. The belief is widely held that if companies or even the economy collapses the gold and the ability to trade that for goods and services will still be there.


Gold is widely traded

While gold is not the only precious metal that is traded as a commodity, it remains the most popular. This is because it is easy to buy and trade, and very widely traded. The market for gold is much larger than the market for metals such as palladium or platinum, and so the metal is more liquid.


You can even use a practice account to try out trading gold before you use your own money. This can give you time to study and get a feel for trading gold before you commit.


Asset diversification with gold is easy to achieve. Simply calculate the amount of assets that you have and then begin to slowly convert some of them to gold and other precious metals. Most experts recommend aiming for at least 10% of your assets. You can buy gold coins, trade gold, or buy gold through a specialized IRA account.

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