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.
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