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

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.