When stock valuations go down, there is a strong likelihood that gold prices will rise. While there is no guarantee that this will happen, it could be a good idea to invest about 5% or 10% of your total portfolio in the precious metal.
In September 2008, when Lehman Brothers, one of the leading global financial firms, went bankrupt, it signalled an important stage of the global financial crisis. At that time, gold was valued at US$884 per troy ounce. As share prices plummeted, gold began its steady rise.
Less than three years later, in August 2011, gold was trading at US$1813, an increase of 105%.
If you don’t want to go to the trouble of buying and storing physical gold, there are several other ways to invest.