No. of Recommendations: 0
pauleckler asks:
Gold positions are common in Europe, but uncommon in the US. Is this a hedge against a downturn or is it an aggressive--the dollar will weaken--investment?

Gold is not usually a good investment, because your funds earn no return unless the value of this commodity rises. So timing is everything. Still precious metals, especially gold, have done very well as the US dollar is weak, and the Feds continue to borrow huge amounts to fund the deficit. But rising interest rates should strengthen the dollar. So are you betting that won't be enough? Or that the Feds will stop raising rates soon, letting the dollar weaken from here?

Gold is not an investment for beginners. It is for experienced investors who know what they are doing--or at least think they do.


I'm taking a 5% position in gold to hedge against possible US dollar losses AND as a proxy for a REIT.

If the yield curve weren't so WIERD, that 5% in gold would be in long-term US based bonds.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement