The gold price has been in rally mode for some time and only reached a new all -time high in February. But despite the latest increase, experts advise caution and warn that gold purchases could now be expensive. In doing so, they also refer to advice from stock market legend Warren Buffett.
• Gold 2025 with new all -time highs
• Expert is reminiscent of Buffett rule
• Expert recommendations: Gold should only make up a very small proportion of diversified portfolio
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The gold price has put an impressive Rally in recent months and finally reached a new all -time high in February. But while according to “CNBC”, more and more investors are obviously interested in an investment in the precious metal due to the strong run, experts are reminding them of reluctance.
Expert warns: Investors are too greedy with a view of gold
For example, financial planner Lee Baker told “CNBC” that he now received a lot more inquiries from customers to a gold investment than a year ago. When looking at the development of the gold price, the investors almost seem to fall into euphoria. “I have the feeling that everyone is getting greedy when it comes to gold,” Baker told the news portal. He also referred to a well -known stock market rule by Warren Buffett: “Be anxious when others are greedy, and be greedy when others are anxious”. Investors should currently take this to heart according to the financial planner.
According to Baker, there is currently a risk that investors would have to buy too expensive for gold and later sell with loss. Because gold does not pay interest or dividends, investors are dependent on selling it at a higher price if you want to make a profit with your investment – a strategy that only succeeds if the right time is hit. “If you get in, then buy at a maximum? I don’t know,” said Baker according to “CNBC”. In any case, he currently sees no reason that the gold price should continue to have a significant upward trend, unless a protracted war, which he does not hope, added.
Sameer Samana from the Wells Fargo Investment Institute is also currently representing a clear position towards gold investments: “Don’t chase after the gold returns. Overall, you should probably hold back at the current level at precious metals,” he said according to “CNBC”.
Although gold is considered a safe port in times of high uncertainty, which is now one of the main reasons for a gold investment, but according to Samana, the precious metal has not always proven to be the best protection in these situations. So “bonds in real times of crisis would have shone as gold,” he told “CNBC”.
Expert recommendations: So much gold belongs to the portfolio
Even if gold promises at least some protection in times of crisis, according to experts, it should only be represented in the portfolio for a limited extent. Lee Baker advises a “typical investor” according to “CNBC” not to keep more than three percent of its diversified portfolio in gold. Sameer Samana from the Wells Fargo Investment Institute also sees the yellow precious metal a very more moderate allocation as useful, as he said to the news side. In his view, it would be okay for investors to keep one to two percent of their well -diversified portfolio in gold – but they should then also consider other raw material investments such as energy, agriculture and other metals such as copper.
As an alternative to a direct investment in gold, financial planner Baker recommends a system in shares of gold mines or ETFs with a gold share. These would offer higher liquidity and thus enable investors to act and sell more flexibly. In addition, the cost of safe storage and insurance required for physical gold would be omitted here, which reduce the return.
Editor finance.net
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