Gold
I disagree I think Gold is going higher, and market valuations in a lot of area are kind of frothy as this market is red hot (Not to say you can't find a undervalued stock here and there, but few and far between at this point). Now I think Gold should be part of everyone's portfolio, and in this current environment, I think it should be a overweight to what it normally is. Under normal conditions I think you should have about 5% (Admittingly I don't even have 5% exposure right now (I consider gold mining stcoks at exposure as well), but I think you could be 10% in gold and not be absurd.
Now how you play gold, I rather go with gold miners. Than the actual metal. A number of them are profitable a decent amount with gold in the mid 1700's as of last quarters average, obviously with gold close to 1900 now they are even more profitable, I think gold is going higher, maybe I'm wrong, nobody would be say putting an absurd % of there money in gold or gold stocks or precious metal stocks for that matter, but this isn't the last 50 years, we are printing at a pace that we have never seen, at some point this will reach a breaking point, now I don't think we are there yet, but do we have to be to see gold at say 2500 or 3000 in a year to 18 months. I will prefer to play this by playing miners, a lot of the ones I follw do pay divys, and you can make a valuation case for at prices. The one I own right now is GCM.TO, it is yielding over 3.5% paying monthly, is is probably trading at a pe of 4-6 even with the costly acquisition which will diversify and increase there reserves so that is a plus. So your not overpaying and your getting a good monthly dividend. And your buying it nowhere near the highs, you can play gold, and collect a divy, nobody at least me is saying go all into gold, but as a part of your portfolio that is not a bad idea in my opinion. All is just my opinion, and I could always be wrong though.
AI
