You are buying too much Gold!

Today, as I was sharing the merits of having Gold in your investment portfolio, a mid-30s male came up to me and asked me this, 

 

“How much should I invest in Gold? How do I even go about doing it?” 

 

A good question. 

 

We operate a precious metals business. Will we ever say  

 

“You are buying too much Gold! Stop buying!”.  

 

ABSOLUTELY, YES WE WILL SAY THAT.  

 

Because the alternative is just simply wrong. No one should ever have 100% of your assets into any 1 basket, that is a gambler’s mindset. (In which case, we can point you to the nearest Casino, they should be welcoming locals with open arms at the moment, given the lack of tourism still in Singapore.) Even Warren Buffet diversifies. So should you. Period. 

 

Hang on, did a Precious Metals Market Leader just mention not to buy Gold? YES we did! And that’s because having too much Gold weightage in your portfolio may not always be a good thing. Let’s dig deeper. 

 There are 2 main reasons investors buy into Gold as an asset. 

Capital Appreciation  

Wealth Preservation 

 

Which reason do you belong to? 

 

Lately, we hear a lot about how Gold prices have gone up more than 50% and that it will continue to have a “meteoric assent to the moon and Gold will have taken a leap for mankind” (we jest but just hear some of the stories that we have heard…) Would Gold shoot up to $10,000 per oz? MAYBE, but that will most probably not happen in 2021 or for the next 5 years for that matter. If you are investing to earn capital appreciation, you need to ask yourself THE important question. 

 

What is my timeframe? 

(We’ll discuss this in greater details next time, subscribe to us for the latest updates. Or simply call us to ask.) 

 

Once you’ve identified your reason for investing in Gold, comes the next part in deciding how much to invest. Ask yourself this very simple yet straight forward question, 

 

Can you sleep at night? 

 

Every investor’s “sleep tolerance level” is different, one may be comfortable with putting in 20% of their portfolio into Gold and possibly see it shrink by 10%. Another may be anxious with even a 5% dip when they’ve only put 10% of their portfolio. And you know what, there’s nothing wrong with it. Which is why here at GoldSilver Central, our purpose is not to sell you more gold, more silver, more platinum… Our purpose is not even to tell you “investors should put 5-10% of your portfolio into Gold. This is historically proven to be the best portfolio weightage according to experts…”  

 

Our purpose is to ask you this,  

 

“Will investing in Gold lead to better sleep for you? If so, lets discuss what is the most cost efficient way to get into it. If not, you should consider why are you even thinking about investing in Gold.”  

 

Are you buying too much gold? Speak to us to create the portfolio tailored specifically for you to have a good rest at night. 

 

Till next time. Sleep well. 

 

Jason