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Portfolio Diversification:
Asset allocation is an important aspect of any investment strategy. By balancing asset classes of different correlations, investors hope to maximize returns and minimize risk. However, while many investors may believe that their portfolios are adequately diversified, they typically contain only three asset classes - stocks, bonds and cash. There are a wide range of reasons and motivations for people and institutions seeking to invest in gold. And, clearly, a positive price outlook, underpinned by expectations that the growth in demand for the precious metal will continue to outstrip that of supply, provides a solid rationale for investment. Of the other key drivers of investment demand, one common thread can be identified: all are rooted in gold's abilities to insure against uncertainty and instability and protect against risk.
How Important is it to Own Gold in this Economy?
Gold has attracted investors throughout the centuries, protecting their wealth and providing a 'safe haven' in troubled or uncertain times. This appeal remains extremely compelling for modern investors. Although there are also a number of other reasons that underpin the widespread renewal of investor interest in gold. Namely the current lending and credit crisis, massive bailouts and their effect on the US Dollar, the feds inability to use rates to fight inflation and the uncertainty and risk associated to the US stock and equity markets. To look the other way at owning physical Gold and, instead, continue to invest 100% of your portfolio in paper-based asset classes is to be desirous of losing more money. Period. It is more important than ever to have a non-trivial percentage of your overall portfolio in physical metals for protection, safety and growth. At Wholesale Direct Metals we specialize in helping our clients to build a measure of protection into their portfolios with addition of physical metals. If you would like to learn more about how you can buy and sell Gold and other precious metals give us a call at 866/925-6625 or look us up on the web at www.wholesaledirectmetals.com. We look forward to helping you with you precious metal purchases. In the coming weeks I will take and publish questions relating to investing in gold so, if you have any, start asking!
Damon Geller is the owner of Wholesale Direct Metals, Inc. Wholesale Direct Metals is a BBB “A” rated, zero complaint Gold wholesaler offering tangible investment products in Gold, Silver, Platinum and Palladium. They are also licensed to roll over IRAs and other qualified plans and back them by physical gold. Damon Geller is a graduate of UCSD in Economics and he attended the Anderson School of Business at UCLA. He is also an experienced equities and metals trader and a venture capitalist
