All that glitters: PH Wealth
Is gold bullion really the golden ticket? Don’t put all your eggs in one basket; diversification matters more, writes financial adviser Shiree Hembrow.
For centuries, gold has captured our imagination. From ancient coins to family heirlooms, it has symbolised wealth, security, and even love. Today, many investors still ask the same question: ‘Should I put my money into gold?’
The appeal is understandable. Gold is tangible. You can hold it, admire it, even store it under lock and key. It has a reputation as a ‘safe haven’, especially when the media is saturated with headlines on market volatility or economic uncertainty. However, while gold has a place in history and sometimes in portfolios, relying on it alone is like betting your financial future on a single card.
Gold doesn’t pay dividends or interest. It doesn’t grow companies, create jobs, or expand economies. Its value depends purely on what the next buyer is willing to pay. Over the long term, gold has lagged the returns of diversified investment portfolios. In other words, if you’re seeking growth and the ability to fund goals like retirement, travel, or helping your children, gold by itself will not get you there.
That’s where diversification comes in. A well-structured investment portfolio combines different asset classes including international and local shares, listed property and bonds. Each has a different role to play. Shares drive long-term growth, bonds can steady the ride, and listed property adds another dimension. Together, they work as a team, smoothing out the ups and downs and giving you a far better chance of reaching your goals.
The key is balance. Too much gold, and you may miss the growth you need. Too little diversification, and your financial security could rest on a single bet. The sweet spot lies in understanding your circumstances, timeframes, and comfort with risk; then building a portfolio tailored to you.
Investing isn’t about chasing the latest headline or putting all your faith in a shiny metal. It’s about creating a plan that gives you confidence today and financial freedom tomorrow.
So, the next time you think of gold as the ‘golden ticket’, ask yourself: could a well-diversified portfolio be a safer bet for the journey ahead? To discuss your investment and portfolio needs, call phwealth on 03 925 8584 or visit the website.
