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.
Potential investors will require a $5,000 minimum investment with subsequent investments of $1,000.
“Still-heightened levels of uncertainty boosted investment across Western markets,” according to the World Gold Council.
“A ‘perfect storm’ of conditions in the gold market this year has pushed investment to historic levels,” the WGC added.
SEE MORE: Record Investment Demand for Gold ETFs
According to the World Gold Council, over the first-half of the year, investment demand for gol hit 1,063.9 metric tons, or up 16% from the previous first-half-of-the-year record in 2009, and accounted for almost half of the overall gold demand for the first six months of 2016.
Financial advisors who are interested in learning more about the bullion market and gold as an asset class can register for the Thursday, August 18 webcast here.