Gold (GC=F) is often referred to as a hedge against inflation and volatility. Gold has been hitting new highs in recent months, raising interest among investors for possible allocation to portfolios.
Allegiance Gold co-founder and COO Alex Ebkarian joins Wealth! to give insight into what beginner investors looking to get into gold should approach adding it to their portfolios.
Ebkarian starts with what to keep in mind for gold: “The Idea of gold is, number one, you want to be able to preserve your buying power, and then you want to look at the outlook.”
He explains that there are a number of factors driving gold prices higher, including the potential for future interest rate cuts and central banks buying the asset.
In terms of allocations for gold, Ebkarian states: “According to The World Gold Council and the ‘In Gold We Trust’ report, what they’ve done is they’ve actually calculated over a long period of time, what is the proper allocation? And what they found is that a 15% allocation is an ideal fit. That does two things. Number one, it de-risks the portfolio. And number two, it enhances a risk-adjusted return.”
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino