Simplest Way to Play Gold Today
Date Posted: December 10, 2013
Read time: 2 min
John Authers of Financial Times speaks with Frank Holmes about how investors should react to gold as we end the year on the metal’s poor performance.
Frank says gold allocation should be like car insurance, “You don’t want to go and have an accident, just so you can collect. You want to make sure if you do have an accident, you can collect.” This is why Frank continues to advocate a 10 percent weighting to gold in a portfolio while annually rebalancing. The simplest way to play gold today, he continues, is to be contrarian.
While Authers admits to being on “the other side of the trade” on gold, find out what compels this gold bear to say “it does seem to me to make imminent sense to at least rebalance somewhat into gold.”
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