Today, savvy investors allocate 2 to 10 percent of their portfolio to gold-related assets. Examples include gold stocks or ETFs, physical gold like bfm trade International’s CashGold product. Gold provides growth but is also a defensive play. In times of economic uncertainty, gold value increases. When recessions and other severe economic turmoil strike, wise investors rely on their gold allocations to offset losses in other assets.
The value of gold increases during tough times because it is accepted for trade throughout the world. No matter where you are, gold commands the price you expect. Gold prices rise predictably. Its value increased during the recession years of 2008 and 2009 and again during the recent years of worldwide economic recovery.