The Capital Gold Group

The Capital Gold Group:  Shrinking U.S. Dollar

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Since 2001, the U.S. Dollar Index has decreased over 30%, and gold prices have increased over 300%.

 

At the turn of the century, gold prices were at their lowest levels of the last decade, and the stock market along with the U.S. Dollar Index, which reflects the dollar’s standing compared to the other major currencies of the world, were making new highs. 

 

The markets shifted in 2001, as the terrorist attacks of September 11th followed by massive government deficit spending propelled the dollar ever lower, and as investors sought the safety and protection of gold for their long-term savings and retirement plans.

 

Now the once mighty U.S. Dollar is no longer just making life more expensive for Americans, it is crashing on currency markets, and its clout is evaporating worldwide as foreign countries, businesses and individuals turn to other stronger currencies such as the euro.

 

The consensus of experts is that budget deficits, weak employment growth and unstable financial markets are likely to keep the U.S. dollar weak into the future, and that it will take years for the dollar to recover its value and prestige.

 

As the US dollar declines further, the upward momentum seen in the gold price is likely to continue.  For this reason, many investors today prefer to hold a portion of their investment portfolio in physical gold versus a portfolio held completely in dollar-denominated assets.

 

 

The Capital Gold Group - GOLD a n d  P r e c i o u s  M e t a l s  i n  Y o u r P O R T F O L I O

 

 

 

 

Asset Allocation Strategy

 

Successful investing today requires an understanding of the big picture with a clear long-term vision, both for individuals as well as institutional investors.

 

Maintaining long-term value and capital growth are the two most common investment goals. The average portfolio is invested primarily in traditional financial assets such as stocks, bonds, mutual funds, and real estate.

 

Adding tangible assets in physical gold to a portfolio increases the degree of diversification by introducing an entirely different asset class, providing greater protection from market risk. This protects the total portfolio against fluctuations in the value of any one type of asset.

 

For example, while U.S. large-cap stocks and international stocks move in the same direction a substantial percentage of the time, hard assets such as gold tend to move in the opposite direction providing a more balanced portfolio.

 

 

Real Estate

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Real Estate

Bonds

5-30% Gold

U.S. & Non-U.S. Stocks, Mutual Funds

U.S. & Non-U.S. Stocks, Mutual Funds

 

 

 

            Typical Portfolio Model                       Maximum Portfolio Diversification Model                                         

 

More investors than ever before are adding gold to their investment portfolios as a diversification strategy due to the fragile nature of paper investments and currencies. The expert consensus is that 5% - 30% of your total portfolio should be in gold for long term preservation and growth.

 

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Whether you are unsure about the appropriate asset allocation percentage for your portfolio or just need help getting started, speak to Capital Gold Group Gold Specialist toll free at 1(800) 510-9594.

Real Estate

Real Estate

Company Stocks, Mutual Funds