As global stock markets go further into unexplored territory, another asset class has been catching investors’ eyes: Gold.
Gold prices crawled higher earlier this month to trade over $1,800 per ounce, crossing a major milestone not reached since 2011.
Now, as coronavirus doubts continue to push the precious metal higher, some experts are suggesting gold could hit record highs.
That has left many people wondering whether now is the right time to invest.
All experts see high potential returns ahead. So, Albert Cheng, CEO of Singapore Bullion Market Association, said the question should be rephrased from “when” to “how much?”
There is no good time to buy gold … every investor should have some.
Cheng explains further, “Every investor should have some gold in their portfolio.”
Normally, financial advisors recommend a gold distribution of 1% to 5% of a traders’ overall portfolio. According to Cheng that could shift higher from 5% to 15%.
Gold has always been known as a downturn-friendly investment — when the stock market has a big pullback, the price of gold often goes up.
According to Thayer Financial in Hickory, North Carolina. “The idea is that it’s a safer investment than equities…
Adding gold to your portfolio can help you diversify your assets, which can help you better weather a recession, plus gold can produce cash flow like other assets, and should be added to your investment mix.