Discussion On Gold – From Price To Portfolio Exposure

Summary

  • There is a big difference between a short term and long term perspective on gold.
  • As gold offers no yield, it is better to consider it a hedge.
  • Therefore, proper portfolio exposure is crucial. We discuss various options on how to find the best exposure for your portfolio.

Investing in gold (GDL) is dangerous. It is easy to get carried away by the many bull theses and become a gold bug.

I am not saying it is not possible for gold to get to $5,000 or even $10,000. I am just saying that the investing theory might be right, but the timing might be wrong.

Therefore, portfolio exposure is crucial. The easiest way to approach this is to ask yourself whether your portfolio can handle gold at $600. If it can, and you are ready to add more, to have proper portfolio exposure in the unlikely case that happens, you have a well balanced exposure to gold.

In the video we discuss:

  • how the dollar affects gold in the short term,
  • how gold is influenced by central bank activity in the long term,
  • what are your portfolio exposure options and possible outcomes when it comes go physical gold and gold miners.

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