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Message:: [QUOTE="Del Pinto, post: 2060876, member: 73128"]Eugene Fama (and French?) included Gold in his optimized asset allocation model a few decades ago.(I'll presume he used Gold notes sold by banks, before 1976.) In modelling, the minimum allocation to an asset is 3% and abit higher to an asset class. Also, where a "Cash" allocation of 5% - 15% was historically considered appropriate/normal, Gold overlaps/fits both "Commodity" and "Cash" asset classes. Gold has already been proven excellent for diversification. Taking the AARP's data for someone Age 60, with $250k in retirement savings (and the reality of $150k published elsewhere) "10%" would be $15k - 25k in Gold. Purchased incrementally, and nothing crazy, that might simply be 1 ozt Au per year over the last 25 years or so, skipping any 'too expensive' years if you so wish. Furthermore, this discipline would have allowed the 'prudent set aside' recommended by financial advisors for 10% of your disposable income in a "rainy day fund." What would the average Dollar Cost Basis have been for a 25 Ozt Gold stash, built over the past 25 years of a working individual's lifetime 1989-2014?[/QUOTE]