As risks, uncertainty grow, so does reliance on gold

TOKYO -- Whether they are stockpiling it for a rainy day or selling it to raise some quick cash, emerging countries are relying more and more heavily on gold. 

Growing instability in financial markets and greater geopolitical risks provide increased incentives for buying the precious metal, and larger gold holdings help improve a country's creditworthiness. When faced with financial difficulties, countries can also sell the commodity for cash.

 

DYI Comments:  For all of the hatred for gold as an investment central banks purchase and hold tons of the barbarous relic.  The Dow/Gold ratio (currently 15.5 to 1) in conjunction with our averaging formula lets us know what percentage is required for protection and profit.

Gold today is neither costly or a bargain for it is now trading at its mean.  The mining companies are now being offered at prices far lower than the actual metal.  This is an excellent time to acquire shares of your favorite precious metals mining fund up to our 17% of our model portfolio.

 Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION -  10/1/15

Active Allocation Bands (excluding cash) 0% to 60%

83% - Cash -Short Term Bond Index - VBIRX

17% -Gold- Precious Metals & Mining - VGPMX

 0% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

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DYI