Allocate 10-15% to gold as stage is set for global recession: Peter Cardillo

ETMarkets

graphic image showing cycles of the moon with question "Why diversify"
“For the long haul, there could be a lot of good buys out there. [i.e., in the stock market]. But by the same token, you need to be hedged and the only way you can hedge yourself in a market like this is by buying a hard asset and that hard asset happens to be gold. That is why if you get a dip in gold prices, add to it. I am not suggesting that individuals should have portfolios made up 100% of gold. But I am suggesting that anywhere from 10% to 15% investment on gold so that it becomes a hedge in your portfolio.”

USAGOLD note: Cardillo is the chief market economist at Spartan Capital Securities. It used to be that most mainstream portfolio managers recommended a 1% to 5% gold allocation.  That allocation number has increased markedly over the past several months with many money managers, i.e., more in line with Cardillo’s number.  Capital preservation, at times, supersedes capital gains as the primary portfolio objective.


Repost from 3-16-2020
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