Cramer says gold is the best insurance policy for your portfolio
“‘I think that 10 percent is the upper limit because I consider gold as an insurance policy, and no worthwhile insurance policy should be 20 percent of the money you have invested,’ the ‘Mad Money’ host said. Cramer recommends gold because it tends to go up when everything else is going down. It is the investors’ insurance against geopolitical events, uncertainty and inflation. Granted, this may sound like a terrible idea since gold has not done anything spectacular in a few years. However just as you wouldn’t own a home or car without insurance, you shouldn’t have a portfolio without gold.”
MK note: OK. Cramer’s on board. At USAGOLD, we recommend 10% to 30% gold diversification depending on your level of concern about the economy, current state of the equity markets, financial system, etc. Also, we would extend the hedging capability beyond inflation only, to deflation, disinflation and stagflation as well. Gold protects against any and all and no matter in which order they arrive.