Gold has obviously been a very hot topic this year, particularly the last couple of months. I have zero allocation at the moment, but am wondering if it makes sense now even despite the insane run up and ATHs.
Just wanted to get some thoughts: My portfolio is currently 93.5% equities, 6.5% cash. Conservatively estimating, the cash portion probably represents ~24 months expenses. I’m thinking about moving 30-45% of that cash into gold ETFs. Would this be a poor idea?
Posted by alwayschillin
4 Comments
Central banks keep buying it since its clear that
1)Geopolitics will be unstable for a very long time economically
2) The 4th reich wants to start a war with China which will cause even more disturbances
3) Their entire economic reforms are based on emotional ideals rather than economic theory so the most likely result is a collapse, poverty(technofeudalism surveilance style) and their bonds falling in value fast if not outright default
I really dont see instability ending anytime soon for gold to not keep going up. (Unless there’s somekind of gold confiscation by governments or something)
It shouldn’t matter. If you really have that cushion you either live extremely cheaply or have a ton of money. Either is fine. I hope by cash you mean SGOV. I would prefer the SGOV personally. But everyone is different. I would just buy GLD auto if you really wanted more exposure there. Like not trade into it just alter the new monies for a DCA direction. Plug holes with new monies if it is that important (hint, it’s probably not). Best of luck!!
I don’t think there’s anything wrong with having a ~3% gold allocation. It’s unlikely you will end up destitute solely for that decision.
I wouldn’t, it sounds like FOMO. Right now the are more effective ways to deploy your resources for diversification and for balancing risk.
I like gold but it is not a company that produces more year after year and thus its share price increases reflecting productivity and market share gains. The price may meander for years and even decades. That means you want to buy gold when nobody else wants it, not when it is at an all time high. I think my cost per ounce is $1,119? And as I said, when I was buying nobody cared about it and the premiums for coins and bullion were almost nothing.
Today if I wanted gold I would open a position in Bitcoin (through BTC or similar ETF). I feel over the next few years Bitcoin has a better chance at gaining than gold and while different, they fill a similar role. Eventually I would convert that position to gold, there is a good chance gold will cement at the current level while Bitcoin eventually doubles.