Gold is Still a Good Bet for Investors

Gold is still a Good Bet for Investors

The gold price is running record high. In past just 1 year (2010), The gold has appreciated 21%. And many people ask me that weather they should invest in gold at this level or is this just a bubble?

Well, it’s still not tool late to invest in gold if you have not invested in this precious asset class yet or want to invest more money in gold. This is because the US Government is weakening the US Dollar by quantitative easings.

And that’s why the value of dollars is decreasing day by day making gold the stronger asset class. In November 2010, The US Government will push more US $ 500 Billion of liquidity in the world economy which will further devalue the dollar.

And that’s why the gold can go up further from this level also. And that’s why there is no problem in investing gold at this level.

However, keep in mind that your gold allocation in your portfolio should not be more than 10% of your overall portfolio net worth. Many investors ask me that, weather they should take out all of their money from the stocks and invest in Gold?

Well, No. You should not do that. You should only invest maximum up to 10% in gold. Anyways…So this Diwali invest in Gold. The Gold can be a good bet in the near future.