With the current state of the economy, is it smart to invest in gold? Joe explains how much of your portfolio he thinks should be in gold regardless of market conditions, in this 60-second countdown question.
0:15 “Most people say that gold is maybe not a good investment, but in this economy and the way things are going maybe it’s something we should look at. How much of your portfolio should be in gold and how much should be not, in other stocks and equities?”
0:48 “To answer your question, I would say no more than 2% of your overall portfolio should be in gold, because gold does not have an expected rate of return. Gold does not grow… it’s a very volatile inflation hedge.”
1:23 “Thousands of years ago, people were able to buy a toga for an ounce of gold. I can go to Nordstrom and buy a suit for the same cost.”
1:38 “Gold does not have an expected return, and a lot of people don’t realize that. It should belong in your portfolio, but not a high percent.”