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Reply to "Husband want to convert all savings into gold"
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[quote=Anonymous]New poster here. Lotta opinions above, expressed in finest DCUM fashion. Here's mine. I'e been investing for 10+ years, done VERY well (eg up 15% last 12 months) with non-traditional (not crazy) strategy. About 13 years ago I bought gold and made a bunch of money. Enough for a really nice vacation. I bought GLD at $68 and sold at $90 in a year. But that turned out to be dumb luck. If I'd done it a few years later, I'd have taken a bath. Luckily I was out by then. I'm back in GLD very modestly now. It's about 1.5% of my portfolio. With all the craziness - cue your husband to elaborate - I suspect there will be another nice little runup. But maybe not. Lots of people believe the market to be hopelessly manipulated. And there are no revenue streams. Blah blah blah. BUT there are ways to address some of the concerns your husband sees without the yellow metal. Yeah, the US is kind of a mess. So invest ex-US. Not emerging markets, developed markets. Stick with large or (better) mega companies. And look for ones with low debt ratios - which are way worse in the US - if you fear a debt bomb (I do). That's for equities. For bonds, go for quality. You can buy ex-US bond funds - or you can buy TIPS, which are US of course, if you fear inflation. Keep six months expenses in cash. Your husband's not nuts, but diversification is always your friend. Good luck. [/quote]
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