Got gold? The radio is teeming with ads promoting gold as the panacea for our current economic and stock market woes, all touting the many ways to profitably invest, whether in bullion, coins, ETFs or mining stocks. So maybe you’re thinking you should own gold in some form since (according to what they say) it will always be worth something.

But does gold really have a place in your portfolio? A thorough analysis should be made to determine if owning gold makes sense for you.

First: are you protected from risk? Not market risk, but accidents, lawsuits, disability and death. These risks can do substantially more damage over the long run than a market correction. Second: do you have enough in liquid savings and are you adding to it in a systematic way? The recent rally in U.S. Treasuries has proven that the good ol’ greenback is still the currency of choice throughout the world. Cash has the ability to solve a lot of economic problems.

If you answered “yes” to the two questions above, then you can begin to consider your portfolio: Is it in balance? Are you too heavily weighted in equities? And what about the velocity of the cash flows created by your investments?

What the ads don’t say is that gold is a single-use investment with its own risk characteristics, not the least of which is volatility. No doubt even a small percentage of the precious metal in your portfolio would have taken the edge off of sharp losses over the last two years, yet over the long haul–when you account for inflation–gold has had little luster.

Instead of succumbing to the lure of gold investing, consider contacting a reputable jeweler and arrange for a custom piece of gold jewelry for your loved one. Not only will it be an investment in gold that you can actually enjoy, you will be doing your part to add to the economy.

If you still are unsure or would like to discuss it further, call me today to discuss your financial goals using the proven PS&G Model®, a tool we use at Chapman Wealth Management that is…

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