Should You Invest in Gold in 2023?Nov 12, 2023
Hello Stoic Investors,
Today, we are talking about something else than stocks.
Let's focus on Gold.
Gold is an old but reliable investment, so let's look how and if we can invest in it.
There are two main ways to invest in gold:
1. Physically holding it
2. Through an Exchange Traded Fund (ETF).
Personally I believe holding physical gold is too much of a hassle, while ETFs is essentially like owning
a document that says you have some gold, without the need to physically store it at your place.
ETFs like SGLD offer a more secure and convenient way to gain exposure to gold's performance.
The Optimal Time for Gold
The big question now is whether you want to invest in gold as speculation or as safe asset.
If you're looking to speculate on gold, the right strategy is to get in before the market starts to shake.
On the other hand, for those playing it safe, adding a bit of gold to your portfolio can help you limit your
losses when the stock market is unpredictable.
Over the past two decades, gold had an average return of 8% annually, which is quite similar to U.S.
However, its performance can be unpredictable—it tends to do well when the market is perceived risky,
but not as much when things are calm.
Experts right now are cautiously optimistic, suggesting a potential increase in gold's value, depending
on global economic and political developments.
For someone like me, at 27, I'm not interested to invest heavily in gold.
I think that its golden era might have passed, unless some really unexpected global events occur.
Incorporating Gold into Your Investment Strategy
If you want to include gold in your investment portfolio, there's no one-size-fits-all answer regarding
how much of your portfolio should be in gold, but you should have at least 5-10% for it to be a good
Overall, incorporating gold can offer diversification benefits, act as a hedge against inflation, and
provide a measure of security in turbulent times.
So, note down these points and start investing today:
1.Gold is often regarded as a safe bet during times of uncertainty and global instability.
2.Investing in Gold ETFs is a practical and hassle-free way to include gold in your investment
3.Historically, gold has maintained a robust performance, offering returns that are comparable
to traditional stock investments.