How Much Gold Should Investors Own
Source: The Market Oracle, DailyWealth (6/8/09)
"You don't want to own too little gold. . .But you don't want to be an end-of-the-world nutcase either."
You don't want to own too little gold and have the purchasing power of all your savings shrink dramatically. You can't afford that. But you don't want to be an end-of-the-world nutcase either.
Well, one of the world's shrewdest investors—Jean-Marie Eveillard—has 10% to 12% of his extremely successful investment fund allocated to gold and gold plays.
Jean-Marie Eveillard's First Eagle Global Fund beat the stock market every year this decade. What's more, he's done it conservatively. . .He doesn't take big risks. Over 30 years, he's proven to be one of the most successful mutual fund managers ever.
So what's Jean-Marie Eveillard recommend buying today?
"After equity markets have gone up 35% - 40% or more over the past three months, ideas that are immediately appealing are few," he told Bloomberg news today. But he did have one big idea. . .gold.
Right now, his fund is about 10% invested "in gold and gold mining securities," he said.
Jean-Marie likes gold because he expects the Fed will leave interest rates near zero for a very long time.
The Fed will "stay pat until the politicians give them the green light to raise rates, which will take quite a while. As long as unemployment is very high, politicians will be reluctant to push up short-term rates."
Jean-Marie believes his clients' money should be about 10% or so allocated to gold and gold investments. What's right for your situation? That's up to you. But if you're substantially under or over the legendary investor's gold allocation, then you ought to consider getting more in line with him.