How Much To Invest in Gold?
This is the most common readers’ query about gold investing. In fact, every week, I receive dozens of such kind of queries about gold Investing.
Well, I advise you to read my article,
Why I Personally Don’t Invest more than 5 % in Gold?
In my article, I have explained in a great detail that what is the main drawback of investing in gold and why you should never invest more than 10% of your total portfolio net worth in a gold?
The gold is a valuable asset class but its non-producing non-cashflow/income generating asset class and this makes its REAL valuations very very difficult.
While Businesses (Equity) have cashflow/income and that’s why valuations of the businesses is really predictable and possible.
And that’s why we can never end up overpaying while buying a business/stocks if we know how to do proper valuation of them.
Remember that, Gold does not have any utility and income generating capacity and this makes its valuations very unpredictable.
So never invest more than 10% of your total net worth in gold.
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