Wealth Diversification

At Gold Investments, the fundamental tenet of our investment philosophy is diversification.

It is extremely important that investors do not have all their investment eggs in the one basket. Asset diversification is fundamental to successful long-term investing and an essential part of the wealth management process. This tenet applies to all investors - individual, company and institutional.

Most investors are overly allocated to stock and especially property markets. It has been shown in numerous financial and academic studies that an allocation of some 10% of one’s portfolio to precious metals is a prudent and sensible investment strategy.

Your Financial Advisor should help you determine if your portfolio is properly diversified — as proper diversification is a key step in setting an appropriate strategy.  Historical trends of return and risk of various asset classes should be considered. In an increasingly integrated global economy present global geopolitical and macroeconomic conditions must also be considered.

In an increasingly globalised world asset and geographic diversification has become essential. This has led to trends in asset allocation changing radically in recent years, with investment portfolios typically much more diverse both in terms of geographic spread and asset allocation.

The goal of asset allocation is to combine investments with different characteristics so that the risks inherent in any one investment can be balanced by assets that move in different cycles or respond to different market factors. And because leadership tends to rotate from one segment of the market to another, asset allocation can also help you gain exposure to market leaders. You won’t have to guess which asset class is going to do well each year if you already have exposure to many different segments of the market.

Investment success takes time, but more than anything it takes asset allocation—the strategic division of investments among different asset classes, based on current geopolitical and macroeconomic conditions and your personal goals, time horizon and risk tolerance.

In order to further understand why diversifying into precious metals is important please see;

Why Invest in Precious Metals?
Why Invest in Gold?
Why Invest in Silver?
Why Invest in Platinum?
Why Invest in Palladium?

 

 

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