Financial advisers should consider protecting their clients' portfolios from increasing economic uncertainty by diversifying into gold, according to Stephen Flood, director of Gold Investments.
He says a 10%-15% allocation to gold or other precious metals can help hedge against the risk of falling equity and property values.
Flood says: “Gold is a good hedging asset class as it is negatively correlated to other, more traditional assets. European investors are currently too concentrated on equities, property and bonds and more diversification is needed in this uncertain economic environment.”
Gold Investments is currently targeting the IFA channel in the UK to spread knowledge and use of gold, along with other precious metals, among investors.
The company is offering IFA clients the opportunity to buy gold, silver and platinum through either physical bullion or certificate programmes.
Physical bullion can be bought in coins or bars and can be shipped directly to the client to store and keep as they wish. Meanwhile, certificate programmes allow investors to buy and sell gold with the Perth Mint of Western Australia with no ongoing storage or insurance fees.
The firm also produces regular updates on financial and economic issues and the effects they have on gold and other asset classes.
The gold products are available for a minimum investment of £5,000, can be incorporated into SIPPs, and pay referral fees of between 1% and 2.25% dependent on the type of investment.
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