Simplest Way to Play Gold Today
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.”
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for their content. Diversification does not protect an investor from market risks and does not assure a profit. The commentary references the investment theory of an investment as insurance against a separate market event that could negatively affect performance of an investment.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.
The chart illustrates the performance of a hypothetical $10,000 investment. This hypothetical portfolio is presented for educational and illustrative purposes only and is not a recommendation to engage in any particular investment strategy. Past performance does not guarantee future results.
Latest ResourcesView All
November 28, 2022Learn More
November 25, 2022Learn More
November 18, 2022Learn More