Question 1. I have an SMSF and with all the concerns and negativity with the share market, I’m thinking of buying some gold bullion. What do you think and is it worthwhile at this point in time? I would appreciate your thoughts. Many thanks.
Answer (by Paul Rickard) : I have never been a gold bull and don't see any compelling need to own gold in my portfolio around these price levels. Critically, golf investments provide no income and apart from normal supply/demand factors, really only get a boost in a market calamity situation. I don’t see a market calamity.
That said, several institutional funds maintain precious metal holdings in the order of 5% to 10%. Perhaps an investment of that amount might be in order.