Tip 6. Gold shines again! - Intelligent Investment Approach

Protect your savings and retirement money with gold.


The government is printing money in huge amounts. Budget deficits are enormous. Interest rates are at 0%. The result of all this could be only one - inflation. The dollar will fall. And this will devalue your retirement and savings accounts. The only question is by how much. I think the fall will be big and I'm not alone in this conclusion. Warren Buffett just said the same in the Wall Street Journal column. But many economists believe the dollar decline will be moderate. Few argue that dollar will remain strong.

This situation creates a need to protect retirement account from inflation. Historically, one of the best way to do this is to buy gold: either physical or by investing in gold companies.

Since I don't want to hold real gold, I put a portion (20% right now) of my money into SPDR Gold Shares, symbol GLD, and into biggest gold producer Newmont Mining, symbol NEM. I sleep better now. I will increase this stake at the first signs of inflation raising it's head.
 
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