(ARA) – The recent recession caused many to reconsider old investing paradigms. Some stocks, mutual funds and other paper assets that looked invincible, turned out to be as flimsy as the paper they were printed on. Homes, which most consider a stable, tangible asset, lost nearly 50 percent of their value on average when the mortgage industry crashed. But one thing hasn’t changed. The term “don’t put your eggs all in one basket” makes more sense today than ever.
Many families are now showing more interest in the tools and strategies that help diversify their financial portfolio in hopes of preserving wealth regardless of the economic environment. But the wheel doesn’t need to be reinvented to find these investing strategies. Gold investment is a hot commodity in today’s uncertain economy. Gold prices increased by 277 percent over the past decade, according to Goldline International Inc., while certain financial markets and U.S. dollar both fell.
Even now, gold prices remain near historic highs, and are expected by some leading investment banks to climb higher. A diversification strategy that includes gold is critical, especially with the potential for high inflation and a declining dollar, both of which are strong possibilities if the U.S. national debt continues to rise.
It’s important to research an investment in gold thoroughly to determine if it’s right for your investment strategy. Gold does not provide income or dividends. There have been periods throughout history when gold has declined in value. And some investors may be dissuaded because gold is a long-term investment.
For these reasons, Goldline recommends that 5 to 20 percent of an individual’s investment assets include gold. In addition, gold should remain in your portfolio for five years or longer.
Goldline International, an industry leader in selling and buying gold and other precious metals, has seen its business grow considerably in recent years from an unexpected source. Investors who never considered gold before, including everyday investors like entrepreneurs, educators, executives and working professionals, are including gold in their portfolio – many for the first time.
“Gold is no longer just for the very rich or so-called ‘gold bugs,” says Scott Carter, executive vice president of Goldline. “It’s not just for conservatives or liberals. It doesn’t discriminate between rural Middle America and the coastal cities. Investing in gold is a mainstream investment strategy that is accessible to millions.”
Whatever your investment goals may be, diversification is important. In today’s market, that means including traditional “safe haven” assets in addition to paper investments. If you have all of your financial “eggs” divided between many different baskets, a drop in the market for one asset class may not have the same effect as it does when you have no other investments. Diversification of your investments will allow you to plan for your future with fewer worries.
Carter recommends that investors acquire a sound understanding of the precious metals market before investing. Important risk information can be found in the booklet, “Coin Facts for Investors and Collectors to Consider.”
Courtesy of ARAcontent
