Tuesday, January 12, 2010

2009 Year End Chart


Owning physical Gold is an essetial part of every investment portfolio because it acts as a counter weight to the market in general. A portfolio is NOT properly diversified if there is no gold component. The weighting of gold in a portfolio may change over the years but it should be included in every diversified and balanced portfolio. Gold acts as your insurance policy against the banking establishment and political unrest.
For example; if we look at the chart above we can see that just a 10% allocation to gold from 2000 to 2010 would have made the difference of your portfolio being positive or negative over a ten year period. This is especially critical for those who are saving for retirement and living on a fixed income because gold will protect your wealth from the ravages of inflation as well.