As always, I need to start off a blog post like this one by saying in no uncertain terms that I am not an investment advisor so take anything I say as informational but not directive. It’s just so you know how I think and not telling you how you should think. Keep that in mind, please. I’m asked questions like this all the time for the obvious reason that my business involves gold and I buy thousands of dollars’ worth every week.
Many times customers ask me if they should hold onto their gold as an investment strategy.
When you’re talking about gold on hand in the form of (for the most part) jewelry that’s no longer worn or broken, the question is interesting to me. The truth is that for many centuries, women weren’t allowed to own ventures or significant amount of cash. The one thing they could own, though, was jewelry. So, jewelry has for more than three thousand of year been a way people stored their wealth.
Does it make sense in the modern world? Well, first and foremost, you need to figure out your investment objectives. From there, you design you actual investments, right? Gold is traditionally an investment designed to be stable, to hedge your bets. The idea is that gold generally increases in value when the rest of the economy decreases. That makes it an effective way to protect your portfolio, to balance out some of the risks of owning investments that rely on a good economy.
That’s the conventional wisdom. Again, talk to an investment advisor. I’ll tell you that online, most recommendations are for gold to represent 5-10% of your portfolio. It should represent more if you think the rest of your portfolio is really risky. Will that work for you? That’s what you should talk to your investment advisor about.
If you have gold that you’d like to sell, I’d like to buy it. I’m committed to offering a fair deal, and you’ll be glad that you got in touch. So, give me a call or drop by my La Jolla showroom.
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