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Insure Your Portfolio with Gold: A Proven Hedge against Uncertainty
Posted On Tuesday, Sep 23, 2008
Is your portfolio bleeding? Read on to know how can you insure it...
A sea of uncertainties has built up over the last few days. The latest news headlines are abuzz with stories of some of the largest banks and financial institutions filing for bankruptcy in the US.
- Lehman Brothers, one of the world’s largest investment banks went bankrupt
- Fannie Mae and Freddie Mac, the largest home finance institutions in the USA, taken over by the government.
- AIG, a large insurance company in the US, was bailed out by the US government.
What Next?!...
Uncertain global capital markets, Rising inflation, falling stock markets, falling real estate prices, rising oil ( until recently), is the reality we have been facing . Uncertainity continues to prevail across the market.
What can you do to insure your portfolio ?
Simple : BUY GOLD
And what could gold do to your portfolio? Historically, gold has protected investors from declining stock markets and uncertainties.
Gold - a good hedge against falling markets.
| Year | Sensex | Gold INR |
| 1982 | 4% | 21% |
| 1986 | -1% | 29% |
| 1987 | -16% | 22% |
| 1995 | -21% | 13% |
| 1998 | -16% | 8% |
| 2000 | -21% | 1% |
| 2001 | -18% | 6% |
| 2002 | 4% | 24% |
| 2008* | -35% | 22% |
The table above illustrates that historically when the stock markets underperformed, gold would have limited your overall losses.
Gold prices during crises - King of uncertain times...
During periods of national crises, emergencies, wars, geopolitical strife or financial turbulence, investors rush to transfer investment assets to gold.
It’s not too late to get the much needed protection for your portfolio, during these uncertain conditions, which may get even worse.
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