Think and Invest in Gold! How much gold should you buy?

Given that gold lends stability to the portfolio and acts as a hedge against inflation, it would always make sense to have some exposure to the metal. The question is, how much?

Although every individual's goals and needs will be different and, therefore, demand a suitable asset allocation strategy, experts believe the exposure to gold should be between 5% and 15% of the individual's portfolio. Swapnil Pawar, CIO, Karvy Private Wealth asserts, "It would be pointless to put less than 5% of the portfolio in gold while anything more than 15% would expose the investor to unnecessary risks."

Borrowing money to invest is never a good idea. Investors who take leveraged bets on gold may be taking a very high risk. If prices go down, you will be hit by a double whammy-the loss on gold as well as the interest payable on the loan.

Source: http://economictimes.indiatimes.com
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