To be properly diversified, portfolios should have some allocation to Gold since the metal acts differently compared to other market influences. Gold is at an all time high so best to average in. That is, decide how much you want (5% to10% of the portfolio may be appropriate) and buy over a period of several months just in case there is a pullback in the short term.
An investment in gold will protect against political uncertainties, inflation, and higher demand form India and China. There are two ways to buy gold cheaply: one is through the ETF symbol GLD which is a pure investment in Gold, and also in another ETF symbol GDX which is an investment in a basket of gold mining stocks. Buy both.
Mr. Tanous is President of Lynx Investment Advisory, LLC. Mr. Tanous has spent his entire forty-year career in the field of finance and money management. Previously, he was Executive Vice President of Bank Audi (U.S.A.) in New York City. Prior to joining Bank Audi, he was Chairman of Petra Capital Corporation, an international investment bank which he co-founded. In prior years, Mr. Tanous was First Vice President and International Regional Director with Smith Barney. During his 15 years with the firm he was also manager of its Paris office and a Director and member of the Executive Committee of Smith Barney International.
Mr. Tanous is the author of Investment Gurus (Prentice Hall/Simon & Schuster), a widely acclaimed book that explores the careers and theories of some of the greatest money managers and financial academics of the 20th century. Investment Gurus was chosen as a Main Selection of The Money Book Club as was his subsequent book, The Wealth Equation. Investment Visionaries was published in September 2003 and Mr. Tanous' latest book, Building a Winning Portfolio (Kiplinger's) was published in January 2008.