05 August 2015

How much gold should you have in your portfolio?

Amid a sea of mainstream media gloomy gold gloating, this unemotional article from Financial Times’ Alphaville blogger Matthew Klein asking the question how much of your portfolio should be in gold is worth a read. The first part discusses the idea that each person’s optimal portfolio depends upon their unique personal circumstances and risks. For example, if you have a stable job like a tenured professor, you could afford to have a more risky portfolio than a casual labourer. Matthew then asks, so “do you have liabilities [ie risks] that gold can usefully hedge”? [read more]

1 comment:

  1. Greetings, I have enjoyed your commentaries of the past year particularly. Some bad press came out in the last few years re the Perth Mint. They should be glad you are writing ex-officio. A little confidence falls out their way on account of you.
    I figure you're aware of Daniel Amerman. As far as I have seen he is a must read about gold as an investment. He is one of few online investment writers who seriously take into consideration both purchasing power, and the western government manias for not indexing capital gains to inflation, gov't calculated, and much less at a more realistic level, ala John Williams at ShadowStats . Gotta know this stuff. Thanks again

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