How Much of My Investments Should Be in Gold?


U.S. gold coin; Photo by Last NYC Hero, via Flickr

Question/Comment: How much of my investments should be in gold?

Paul Solman: Unfortunately, I can’t possibly give you an answer to your question, except to say that none of my investments are in gold (or ever have been). Thus, to advise you to put your money where even my mouth isn’t would be hypocritical.

That said, my mind has pondering the same question yours has, and considering a gold purchase for quite awhile. I DO wonder, what with the Fed creating so many new dollars, if inflation might not be around the bend – or down the line, pick your cliche.

But my hedge against that possibility is TIPS: Treasury Inflation-Protected Securities, which I’ve touted here before. (You can learn about them and buy them directly from the government here.)

Gold just strikes me as a sterile throwback. But should I chicken out and make a gold investment, I’ll share the decision on the Business Desk. Stay tuned.