By allocating 5% of your portfolio to gold investments, you protect yourself from future potential financial turmoil coming from the unprecedented monetary easing policies and low interest rates combined with slow economic growth. If you can stomach volatility, I would definitely go for gold miners. But if you prefer more stability, then actual gold would also do the trick of protecting your portfolio where you limit your downside but the upside is also trimmed. In order to allow for liquidity and make rebalancing easy, a Gold ETF doesn’t seem like such a bad idea.
