Diversifying Your Portfolio Using Gold
Tangible assets such as gold, other precious metals and rare coins are a great
addition to any portfolio because they are a good hedge against the volatility of the
stock market and are not affected by the same market conditions as stocks and
bonds. Many investors will diversify their portfolios right away using gold bullion;
however there are many other types of gold that you can purchase to diversify your
portfolio with that will also be very beneficial. Experts recommend diversifying your
portfolio using gold across three different sectors, short-term growth potential,
medium-term growth potential, and long-term growth potential.
Investing your dollars in these three different sectors will give your portfolio the best
long-term profit potential; it will secure your financial future and provide you with
the best overall performance. The three recommended tangible assets classes have
their own individual benefits to them, however when you combine them all together
you are sure to get the best protection as well as the biggest profit potential.
The first level consists of putting 30-40% of your tangible gold assets into your
portfolio and hold onto it short-term, a recommended one to three years. The gold to
be purchased for this level is gold that is going to give the highest return short-term,
which would be gold bullion or investment grade gold. Two specific recommended
coins are the 1 oz American gold eagle coins because it moves dollar for dollar
with the spot price of gold and the investment grade common date $20 Saint
Gaudens Double Eagle because it offers extra leverage to the gold market.
The second level consists of holding your gold medium-term in order to receive the
growth potential for these coins. You should allocate 15-20% of your tangible gold
assets and hold onto them for three to five years. The type of coins you will want to
purchase for this sector is Mint State Gold coins. This would include U.S. gold coins
minted between 1890 and 1933. You will want them to be a mixture of the Liberty
series, Saint Gaudens and Indian Heads.
The third level consists of holding your gold long-term in order to receive the highest
return on your gold. The minimum holding time would be five years. You will want to
put 30-40% of your tangible gold assets into this sector and it should be in rare gold
coins. The reason for the coins to be rare is because they have historically produced
the highest long-term returns and since their supply is limited a high demand for
them can increase their price rapidly. To buy silver online and see special offers for
gold and silver visit http://www.goldandsilveronline.com.
14231 N. 7th Street Suite 4A
Phoenix, AZ 85022