While physical gold is considered a safe haven investment, Goldflorin certainly does not advise you to allocate your entire portfolio to gold. Commonly asset managers advise to invest 10% of the liquid wealth in a portfolio is invested in gold, however in more uncertain times this % increases. Goldflorin advises its clients to spread their wealth and do not allocate more then 20% of their portfolio to gold. Diversification is intelligent and the effect of the hedge with gold is at its ideal point between 10% and 20%.
Spreading your investment interests across stocks, property and gold and also silver is a wise, low-risk way to manage your portfolio. If your stocks are underperforming, the likelihood is the gold price will over perform. In case the short-term outlook for the markets are very positive, then it is advisable to keep the gold investment to a minimum, because normally the gold price decreases as the economies start to recover. It is an unlikely scenario where all investments will be buoyant at any one time; successful investment advisors and investors identify the right markets at the right time, with physical gold being a great exception to that rule. It is always the right timing to hold gold investments in the portfolio.