Gold as part of portfolio

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    Why do investment adviseres always maintain the fiction that gold should make up 5-10% of an investors portfolio. Who actually does?

    From my recollection at the top of the boom, US markets had a total market cap of around USD13 trillion now it would be say half USD 6.5 trillion. Lets say the rest of the world would be about twice US market cap making total world stock market cap of around USD 19.5 trillion. Now if every one had the madatory 5-10% of their portfolios in gold this would be USD1.95 trillion invested in gold. Now all the gold in the world is about 130,000 tonnes = 130,000 t x 32,150oz per tonne xUSD320 per ounce = 1,337,440,000,000 which is USD1.337 trillion. And supposedly USD610 billion invested in gold stocks. No way in the world is the total market cap of all gold stocks USD610 billion. Try about USD 50 billion

    Furthermore If you take out things like gold held by central banks, the capital invested in real estate, unlisted investments there is no way in the world that on aggregate the average investor has 10% in gold related investments as a hedge.

    What does that mean?
    No one listens to investment advisers?
    The actual average gold associated investment in the average portfolio is about 1-2% max.

    Investment advisers are implying out of date data that is 20 years out of date and was probably accurate in the early 1980s. Of course everything is open to change

    Vasco
 
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