sâmbătă, 27 septembrie 2014

Common Questions on Investing in Gold

I have listed below some questions that may have been left without answers throughout this paper.

If after the end of this article you still have any questions, leave a comment to make this article more complete.
How to identify a good time to buy gold?

That's the question we all want ready response with several tips investment.

Although it is impossible to predict the future, a good time to buy gold would be:

     high inflation
     The high price of the Dollar
     Low interest rates
     Financial Crises

Gold's investment or capital protection?

We can say that it fulfills both functions well, given due attention to both functions.

From a technical point of view of investment, it offers a low correlation with other assets and a high return (historic). Since 1999, Gold has had a return of 1,050% or an annual return of 21.52%.

Therefore, any portfolio that had gold in its allocation since 1999 has improved its risk return ratio x.

Besides the good historical returns, Gold is an essential investment in financial crises, ensuring optimal protection for the investor.

In these times of crisis, assets such as stocks, real estate funds and fixed and indexed to IPCA long maturity bonds tend to lose value.

Few assets that earn value in these periods and Gold is one of the best, along with the Dollar.
Investing in Gold in cash or certified Gold in?

Some more conservative and concerned, readers probably prefer the Gold in kind and saved you to avoid confiscation by the government and serve as currency in extreme situations.

Already certified gold, offers more convenience to buy and sell, and less bureaucracy and their own safe place for safekeeping.

This answer depends on the investor's preferences. Personally, I prefer the Gold certificate in, its convenience in relation to Gold in kind.

I prefer a certificate that my Gold is stored in the bank than to have my own gold stored at home.
What are the risks related to gold?

The main risk for those looking to buy certified Gold is your depreciation on the stock market price.

For those who want physical gold at home the main risks are:

     Do not have a safe place for the custody of the Gold and increase the chances of being robbed.
     Extra need for assessing the quality of gold, to attest whether it is actually 24k (99.9% pure).
     Lack of liquidity at the time of sale.

What is the Appropriate Allocation of Gold in a Portfolio of Investments?

Despite all the attractiveness of investing in Gold and its great profitability in the last 14 years, the investor is not recommended to have more than 20% of its allocation in Gold.

Ideally the investor seeking broad diversification of its portfolio of your asset allocation, never putting much of their capital in a single class of investments.

As it is very simple to invest in Gold through Gold Fund Orama from $ 5,000, I think very viable for all types of investor put at least 5% of your capital in gold.

Generalizing, investment in gold could be allocated as follows:

     Optimistic Economic Scenario: 5%
     Economic Scenario Neutral: 10%
     Pessimistic Economic Scenario: 20%

This is just an example, and the optimal allocation varies from investor to investor.

Niciun comentariu:

Trimiteți un comentariu