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Should You Still Invest in Gold?

By Justin Krane

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Published: 12Mar2012
Word count: 448
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Invest in Gold. Still a Smart Move for Your Portfolio

Wow, another reminder to invest in gold! Debka.com is reporting that India will use gold to buy oil from Iran. India spends around $12 billion dollars a year to buy oil from Iran. China is expected to use gold as the unit of currency to buy oil from Iran as well.

So what does that mean? India and China have completely lost faith in the dollar and the euro. India and China are growing faster than the U.S. and are the engines of this new global economy. They have way more influence in the global economy than they did just a few years ago.

As Bob Dylan would say, "the times they are a changing." You may want to invest in gold for your investment portfolio and if you already own gold, you may want to discuss this with your financial advisor. Most financial advisors recommend an allocation between 5-15% of gold. An easy way to invest in gold is to buy it through an exchanged traded fund. Go here for more details. http://www.spdrgoldshares.com/

What are the reasons to invest in gold? (or buy more)

* You think the dollar will continue to devalue.
* You are concerned about the U.S. printing money to get out of recession/slow growth.
* You are concerned that inflation is going to come back big time.
* You are worried that Greece will default or that things in Europe will get worse.
* You think there is a chance that the euro will devalue more or just go away. You are also concerned that the Europeans will print money to get out of their own recession.

As I write this, gold is at $1,665 an ounce. It has been up 10 years in a row. So, you need to ask yourself how much of this negative news in the world is already factored into gold stocks? That means you may be buying gold at a high. If you think there is more negative news to follow, then you need to invest in gold.

Oh, and one more thing about whether to invest in gold. Historically, gold has not been correlated to stocks. In other words, whatever has happened to stocks has had little impact on the price of gold.

Keep in mind that this is general advice. You need to understand your tolerance for risk. Gold should not be the only investment in your portfolio. Gold can go down and you can lose money. Use it as a hedge against your other investments.

Justin Krane is a certified financial planner who has helped countless entrepreneurs create a bigger vision for their businesses by showing them how to identify and meet goals for increasing revenue. Go now to http://kranefinancialsolutions.com to get your free financial planning toolkit and you'll also receive a bonus audio CD on increasing your business revenue.

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