Allocating Toward Gold for a Diversified Investment Portfolio

In a world awash of easy money and rising uncertainty, investors and advisors should consider allocating a portion of their portfolio to hard assets like gold to help stabilize their investments against swings in traditional assets.

On the upcoming webcast this Thursday, What’s the Optimal Percent Allocation to Gold?, Jerry C. Wagner, President and Founder of Flexible Plan Investments, will outline the current market environment and look to a gold bullion strategy as a portfolio diversifier.

For instance, the Gold Bullion Strategy Fund (QGLDX) is the first and only no-load gold bullion fund available to non-exchange traded fund, mutual fund investors. QGLDX tries to reflect the daily percent change in gold bullion as determined at the end of each day. In contrast, other gold-related funds primarily track gold mining stocks.

Specifically, QGLDX may utilize near-term futures and gold ETFs to capture the price movements of gold. Additionally, the fund may include short-term bond allocations further support stable pricing and offset the fund’s expense ratio.

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Moreover, unlike other gold investments, QGLDX may offer some tax benefits. Investors will not have to fill out the onerous K-1 form and will not be subject to the collectibles tax rate associated with other physically backed gold holdings. The fund is taxed as a normal mutual fund with the usual ordinary income, with the usual capital gain or loss tax treatment.