22 Apr 2016

A week does not go by without someone asking me what I think about gold.  Let’s make something clear, I LOVE GOLD!  Who doesn’t?  However, these people are asking me what I think about gold as an investment. Well, I really don’t have an opinion. You see, the issue of whether or not gold is a good investment isn’t the real concern. It’s the percentage of your overall investment net worth that your gold holdings represent.

I am not in the prediction business. I have no opinion on gold. I only get concerned when people have too much invested in it. Or, for that matter, too much of anything.  At Premier, our opinion is you should not have any more than 5-8% of your holdings in any one specific asset, like gold.  Again, this is our opinion. It’s your money and you can put all of it in gold, if that is what you wish.

Investment net worth (INW) is essentially your assets less your residence, autos, boats, personal property, etc. In other words, it’s your investments only. So let’s say you have an INW of $500,000. Using the percentages I mentioned before, an appropriate holding of gold would be in $25,000-$40,000 range. At best, this is only a starting point. You will need to decide if you want to own physical gold or possibly the shares of the companies that actually mine the gold.

Gold can be expensive to hold and normally does not pay any income. So, if you ask me about gold I will tell you I love it. If you ask me about it as an investment, well…

Good Luck!



Jeffrey Johnston

Jeff has over 30 years of experience in the investment industry. He currently holds his FINRA Serices 6, 63, 66, 7, 24 & 51 licenses with LPL Financial as well as his health and life insurance licenses.