Good to have 'part of portfolio in gold' - Monday 12th November 2007

Financial experts have identified gold as an investment of 'integrity' at times of market woes, but said that bullion investors knew they could be in for a rocky ride.

Bloomsbury Financial Planning claimed that there were strong arguments for holding some form of gold investment in a portfolio, highlighting Gold Bullion Securities as a fully tradable option.

Market bulls who buy gold do so on the belief that currencies may be over-valued and subject to a subsequent drop, said the group, with those gambling on gold often reaping rich rewards.

Jason Butler, a certified financial planner with Bloomsbury Financial Planning, said: "There is a compelling argument for including some kind of gold exposure in your portfolio – if you believe that the governments have printed money willy-nilly and created inflationary problems."

However, he cautioned: "If you feel that having a store of value is important and relevant, then my advice would be: I wouldn't hold more than 20 per cent of your portfolio in gold."

Gold prices have surged dramatically since mid-August, with bullish investors backing the metal and driving its price up as storm clouds gathered over sub-prime mortgage defaults and the wider US economy.
Goldbug, 12 Nov '07

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