Gold investments 'have diversification benefits'

Friday, 7th May 2010

Investors who are looking to diversify their portfolio of wealth may be advised to put their money into gold, as one expert has suggested the precious metal offers benefits during volatile economic times. Dan Denbow, co-portfolio manager of USAA Precious Metals & Minerals Fund, told CNBC that gold has diversification benefits when there is uncertainty in the financial markets. "Gold is specifically an uncorrelated asset so having it a little bit in the portfolio helps during these volatile times," he explained. 

Jason Hommel, writing for Silver Stock Report, recently stated that investors who are hoping to protect their wealth during periods of inflation may also be wise to put their money into the yellow metal. He said that the best time to own gold is when worldwide governments start confiscating more wealth through inflation policies, adding that many are turning to the precious metal as they have "totally lost faith" in their country's leaders.