The 5% Solution
In keeping with my Mad magazine motif this week . . . remember the Spy vs. Spy comic strip they used to run?
That came to mind reading a Wall Street Journal article almost two months ago that presaged the latest upward spike in gold prices (now over $1,500 an ounce).
See if you can tell who’s the bull, and who’s the bear:
I do not advocate an enormous percentage allocation to gold, but I do think a responsible investor should allocate at least a portion of their portfolio (5% to 10%) to the metal.
–Janet Briaud, “The Case For and Against Gold”; The Wall Street Journal (3/14/2011)
In my opinion, people with a strong urge to have some money in gold can keep up to 5% of their portfolio there as a hedge if they promise to hold it there rain or shine.
–Lew Altfest, “The Case For and Against Gold”; The Wall Street Journal (3/14/2011)
For the record, the first commentator is the bull, the second the bear.
If they’re to be believed, the prudent amount of gold one should own is . . . . . 5%.
P.S.: see, “The Gold Tax” for another take — mine — on gold, silver, etc. a year ago (still accurate, IMHO).
