How much Gold do you own and why?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Locked
Topic Author
Always passive
Posts: 1265
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

How much Gold do you own and why?

Post by Always passive »

I know that gold is a highly controversial investment. There are many opinions, from Buffett's very negative to those that hold 25% following the Permanent Portfolio strategy.
I happen to own a bit less than 5% and wonder if I should not increase it to 10%.
For those that believe in this asset, what is the reason that you believe in it?
I would appreciate your comments!
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: How much Gold do you own and why?

Post by Toons »

None
Non producing Asset


:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Topic Author
Always passive
Posts: 1265
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Re: How much Gold do you own and why?

Post by Always passive »

Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Last edited by Always passive on Thu Jul 29, 2021 10:46 am, edited 1 time in total.
User avatar
gwe67
Posts: 1364
Joined: Mon Dec 23, 2013 8:52 pm

Re: How much Gold do you own and why?

Post by gwe67 »

I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.

I only have gold in the form of a wedding ring. Not a polygamist, so I don't plan on adding any to the portfolio.
Last edited by gwe67 on Thu Jul 29, 2021 10:47 am, edited 1 time in total.
VTI 48%, VXUS 12%, BND 40%
runner3081
Posts: 5978
Joined: Mon Aug 22, 2016 3:22 pm

Re: How much Gold do you own and why?

Post by runner3081 »

Physical gold, zero.

Have a small, less than $500 holding in RING - iShares MSCI Global Gold Miners ETF (pre-index fund days).
Da5id
Posts: 5058
Joined: Fri Feb 26, 2016 7:20 am

Re: How much Gold do you own and why?

Post by Da5id »

Always passive wrote: Thu Jul 29, 2021 10:45 am
Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Ok, but it feels like the thread then becomes "Create for me an echo chamber of believers to persuade me to do what I already want to do anyway"
sailaway
Posts: 8184
Joined: Fri May 12, 2017 1:11 pm

Re: How much Gold do you own and why?

Post by sailaway »

Always passive wrote: Thu Jul 29, 2021 10:45 am
Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Well, at least we are being honest about our desire for confirmation...
Topic Author
Always passive
Posts: 1265
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Re: How much Gold do you own and why?

Post by Always passive »

gwe67 wrote: Thu Jul 29, 2021 10:46 am I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.
Why is Israel relevant? In fact for US investors it should be more relevant given the deterioration of the dollar. Israel has one of the strongest currency in the world.
esteen
Posts: 435
Joined: Thu May 23, 2019 12:31 am

Re: How much Gold do you own and why?

Post by esteen »

sailaway wrote: Thu Jul 29, 2021 10:48 am
Always passive wrote: Thu Jul 29, 2021 10:45 am
Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Well, at least we are being honest about our desire for confirmation...
https://www.bogleheads.org/wiki/Behavio ... ation_bias
This post is for entertainment or information only, and should not be construed as professional financial advice. | | "Invest your money passively and your time actively" -Michael LeBoeuf
User avatar
gwe67
Posts: 1364
Joined: Mon Dec 23, 2013 8:52 pm

Re: How much Gold do you own and why?

Post by gwe67 »

Always passive wrote: Thu Jul 29, 2021 10:50 am
gwe67 wrote: Thu Jul 29, 2021 10:46 am I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.
Why is Israel relevant? In fact for US investors it should be more relevant given the deterioration of the dollar. Israel has one of the strongest currency in the world.
Then I suppose you have answered your own question....drop gold.
VTI 48%, VXUS 12%, BND 40%
User avatar
TomatoTomahto
Posts: 17100
Joined: Mon Apr 11, 2011 1:48 pm

Re: How much Gold do you own and why?

Post by TomatoTomahto »

I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
I get the FI part but not the RE part of FIRE.
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: How much Gold do you own and why?

Post by exodusNH »

Always passive wrote: Thu Jul 29, 2021 10:33 am I know that gold is a highly controversial investment. There are many opinions, from Buffett's very negative to those that hold 25% following the Permanent Portfolio strategy.
I happen to own a bit less than 5% and wonder if I should not increase it to 10%.
For those that believe in this asset, what is the reason that you believe in it?
I would appreciate your comments!
https://www.youtube.com/watch?v=ulgqlQWlPbo
User avatar
gwe67
Posts: 1364
Joined: Mon Dec 23, 2013 8:52 pm

Re: How much Gold do you own and why?

Post by gwe67 »

TomatoTomahto wrote: Thu Jul 29, 2021 10:54 am I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
I was without electricity and running water for a week, and nobody was bartering with precious metals. People were desperately seeking gasoline, generators, drinking water, food and firewood. But not metals. Even if the situation had gone on for months, I'm sure that metals would still have been of little trade value.
VTI 48%, VXUS 12%, BND 40%
Topic Author
Always passive
Posts: 1265
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Re: How much Gold do you own and why?

Post by Always passive »

gwe67 wrote: Thu Jul 29, 2021 10:54 am
Always passive wrote: Thu Jul 29, 2021 10:50 am
gwe67 wrote: Thu Jul 29, 2021 10:46 am I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.
Why is Israel relevant? In fact for US investors it should be more relevant given the deterioration of the dollar. Israel has one of the strongest currency in the world.
Then I suppose you have answered your own question....drop gold.
Your point is well taken, but most of my money is not invested in Israeli shekels, but in US dollars.
JC Denton
Posts: 101
Joined: Wed Mar 31, 2021 3:16 pm

Re: How much Gold do you own and why?

Post by JC Denton »

I have 7% of my portfolio in a low cost gold etf. It’s insurance against hyperinflation, inflation, collapse.

I am confident it will be at its current value in 15 years because the government will not solve debt in that time.
User avatar
Bentonkb
Posts: 83
Joined: Sun Mar 07, 2021 5:47 am

Re: How much Gold do you own and why?

Post by Bentonkb »

I allocate 8% to a basket of goods that will hold their value (collectively). It is almost all gold futures contracts right now, but it could include cash or commodities in the future.
User avatar
MahoningValley
Posts: 189
Joined: Sat Dec 01, 2007 11:38 am
Location: South Florida

Re: How much Gold do you own and why?

Post by MahoningValley »

I have 10 Krugerrands. I bought them because my wife doesn't believe in cyberspace money; that is, stock market investments. She wants cash hidden underneath the bed, so I got her the coins and she is happy. There are plenty people stacking gold, but they are probably not here.
Northern Flicker
Posts: 15288
Joined: Fri Apr 10, 2015 12:29 am

Re: How much Gold do you own and why?

Post by Northern Flicker »

Always passive wrote: Thu Jul 29, 2021 10:50 am
gwe67 wrote: Thu Jul 29, 2021 10:46 am I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.
Why is Israel relevant? In fact for US investors it should be more relevant given the deterioration of the dollar. Israel has one of the strongest currency in the world.
Why would you want a large stake in gold then?
User avatar
retired@50
Posts: 12707
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: How much Gold do you own and why?

Post by retired@50 »

This chart from Jeremy Siegel's book "Stocks for the Long Run" sums it up for me.
ETA: To answer the OP's question, I don't own any gold, and the chart below is the reason why.

Image

Regards,
Last edited by retired@50 on Thu Jul 29, 2021 1:48 pm, edited 1 time in total.
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
User avatar
TomatoTomahto
Posts: 17100
Joined: Mon Apr 11, 2011 1:48 pm

Re: How much Gold do you own and why?

Post by TomatoTomahto »

gwe67 wrote: Thu Jul 29, 2021 10:59 am
TomatoTomahto wrote: Thu Jul 29, 2021 10:54 am I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
I was without electricity and running water for a week, and nobody was bartering with precious metals. People were desperately seeking gasoline, generators, drinking water, food and firewood. But not metals. Even if the situation had gone on for months, I'm sure that metals would still have been of little trade value.
We have solar, batteries, generators, wells, septic, and more firewood than we could use in 3 years (we heat and cool with geothermal though). Other than propane for the generators, we don’t use fossil fuels.

Food, however, is something that we still rely on others for, and in a pinch, I would have used silver if the farmers around me would not accept cash (which we also had a good stash of).
I get the FI part but not the RE part of FIRE.
Da5id
Posts: 5058
Joined: Fri Feb 26, 2016 7:20 am

Re: How much Gold do you own and why?

Post by Da5id »

retired@50 wrote: Thu Jul 29, 2021 11:46 am This chart from Jeremy Siegel's book "Stocks for the Long Run" sums it up for me.

Image

Regards,
I own no gold and don't intend to own it as an asset class. But the chart isn't really fair to the US based gold investor today. The removal of the gold standard in 1968 does make for a marked change such that data before 1968 has lost much of its relevance. Doesn't mean it is at all a good investment, but it is *perhaps* better than the Siegal chart makes it look.
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: How much Gold do you own and why?

Post by exodusNH »

Da5id wrote: Thu Jul 29, 2021 11:55 am
retired@50 wrote: Thu Jul 29, 2021 11:46 am This chart from Jeremy Siegel's book "Stocks for the Long Run" sums it up for me.

Image

Regards,
I own no gold and don't intend to own it as an asset class. But the chart isn't really fair to the US based gold investor today. The removal of the gold standard in 1968 does make for a marked change such that data before 1968 has lost much of its relevance. Doesn't mean it is at all a good investment, but it is *perhaps* better than the Siegal chart makes it look.
It manages to keep up with inflation over the course of centuries, which obviously is irrelevant to most people.
mailboat
Posts: 19
Joined: Mon Jan 20, 2014 8:18 pm

Re: How much Gold do you own and why?

Post by mailboat »

BIG FAT ZERO.
VOO 30% | Bitcoin 20% | ARK 5% | Cash 5% | California Real Estate 40%
mptfan
Posts: 7201
Joined: Mon Mar 05, 2007 8:58 am

Re: How much Gold do you own and why?

Post by mptfan »

None, I do not own any gold.
Vanguard User
Posts: 2133
Joined: Wed May 26, 2021 5:46 pm
Location: Sugar Land, Texas

Re: How much Gold do you own and why?

Post by Vanguard User »

None and don’t plan to.
alfaspider
Posts: 4805
Joined: Wed Sep 09, 2015 4:44 pm

Re: How much Gold do you own and why?

Post by alfaspider »

Northern Flicker wrote: Thu Jul 29, 2021 11:32 am
Always passive wrote: Thu Jul 29, 2021 10:50 am
gwe67 wrote: Thu Jul 29, 2021 10:46 am I don't live in Israel, so I have no idea how I would invest in your country. Maybe gold would be appropriate in Israel, but not in the U.S. You should put [Israel] in your subject line.
Why is Israel relevant? In fact for US investors it should be more relevant given the deterioration of the dollar. Israel has one of the strongest currency in the world.
Why would you want a large stake in gold then?
I'd argue that even strong local currency like the Israeli's Shekel or the Swiss Franc is still vulnerable to price swings because the amount in circulation is small enough that significant local events or changes in sentiment about the country could have an outsized impact. Specific to the Shekel, while it has appreciated vs the USD over the last 20 years, there have been periods of relatively sharp decline (such as the 2008-9 period where it want from .3:1 to .24:1) The USD is intertwined with the economies of most of the globe, and it would take some truly enormous world events to change that.

Regardless, I don't particularly like gold because it is cumbersome and non-producing. Buy it in a synthetic instrument like an ETF, and you run into fees and potentially decay depending on how its run. Buy physical gold and you have to put it somewhere, which either incurs cost or security risk (or both). Personally, I believe the chances that precious metals would be useful as barter instruments in the event of a broad social collapse are pretty astronomically low. As far as inflation hedges go, Real estate is also cumbersome, but at least produces income, and you can buy REITs or outsource management if you don't want an active investment. If you want a speculative asset that might be a useful medium of exchange in the event of hyperinflation, there's always crypto (though I don't own any of that either).
Last edited by alfaspider on Thu Jul 29, 2021 12:31 pm, edited 3 times in total.
User avatar
welderwannabe
Posts: 1625
Joined: Fri Jun 16, 2017 8:32 am

Re: How much Gold do you own and why?

Post by welderwannabe »

I hold about 2% gold, mostly in ETF format as GLDM.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.
DarkHelmetII
Posts: 1436
Joined: Mon Jul 24, 2017 12:25 pm

Re: How much Gold do you own and why?

Post by DarkHelmetII »

Always passive wrote: Thu Jul 29, 2021 10:33 am I know that gold is a highly controversial investment. There are many opinions, from Buffett's very negative to those that hold 25% following the Permanent Portfolio strategy.
I happen to own a bit less than 5% and wonder if I should not increase it to 10%.
For those that believe in this asset, what is the reason that you believe in it?
I would appreciate your comments!
I own 25% gold in Permanent Portfolio which is $$ earmarked for a potential down payment on a house. Everything else, namely retirement, is typical BH three fund with only stocks and bonds.

Gold is not an investment, it is insurance. Insurance costs money but dampens the financial impact of unexpected shocks. One's risk tolerance and investment time horizon should dictate if any gold allocation is appropriate.
EnjoyIt
Posts: 8244
Joined: Sun Dec 29, 2013 7:06 pm

Re: How much Gold do you own and why?

Post by EnjoyIt »

Always passive wrote: Thu Jul 29, 2021 10:33 am I know that gold is a highly controversial investment. There are many opinions, from Buffett's very negative to those that hold 25% following the Permanent Portfolio strategy.
I happen to own a bit less than 5% and wonder if I should not increase it to 10%.
For those that believe in this asset, what is the reason that you believe in it?
I would appreciate your comments!
I own gold because I was foolish enough to think the US economy had a chance to collapse in 2009. I picked up some physical gold and silver coins back then. I hold it today for 3 reasons.

1) As a reminder to stop paying attention to finance media
2) Just in case, for some very unlikely reason I need an easily manageable and movable asset that I can exchange in the most dire situations.
3) Gold coins are pretty to look at and feel good in my hand

To have any real value in one's portfolio as a hedge against certain risks, one needs to have at least 10% and more like 20-25%. That is way too much risk to invest in one asset with a history of pretty much 0 return.
A time to EVALUATE your jitters: | viewtopic.php?p=1139732#p1139732
User avatar
Doom&Gloom
Posts: 5398
Joined: Thu May 08, 2014 3:36 pm

Re: How much Gold do you own and why?

Post by Doom&Gloom »

I have one US $2.50 gold coin in very good condition.

Have held onto it for ~60 years because my grandmother gave it to me. No plans to sell at this time.
Gentlermadness
Posts: 6
Joined: Sun Dec 08, 2019 11:59 pm

Re: How much Gold do you own and why?

Post by Gentlermadness »

I own 5%, I had 10% as an emergency fund. With the recent (last year) accelerated printing and US spending spree I did not feel comfortable keeping a 10% Emergency fund in cash. I bonds are a possibility for me but I went with physical gold, basically due to lack of faith that US government would not manipulate things if there was a crisis. Same reason I have for not putting all my eggs in TIPS etc. It basically was/is a vote of no confidence in US govt. The US still is the best place for me personally for the remainder of my portfolio (Total stock/total bond) but I wanted my Emergency fund to be diversified outside of US control. FYI I also diversified into crypto with 3 percent. So EF is 2% cash, 3% crypto, 5% physical gold.

I view it as not part of my portfolio that is going to grow. It is sleep well at night money. My job is very stable and very low likelihood of needed an EF(stable income, no debt, 1 year food, able to bike to work if needed) My expenses if i need to cut back are extremely low.
Bear906
Posts: 110
Joined: Fri Mar 12, 2021 12:07 am

Re: How much Gold do you own and why?

Post by Bear906 »

I have held gold ETFs in my portfolio during mid 2019 to early 2021 for the sole purpose of managing portfolio volatility. Holding the gold position during that particular timeframe accomplished that goal to my complete satisfaction.

I liquidated the position upon moving to the Bogleheads 3-fund model. I embrace volatility now--volatility creates opportunities for profit via rebalancing, and the 3-fund model makes it easy.

That said, if we someday have another global economic challenge akin to the 2020 response to the pandemic, I might re-establish a 10% allocation to gold in an effort to manage portfolio volatility.
Eschew obfuscation.
bogledogle
Posts: 656
Joined: Wed May 07, 2014 4:34 pm

Re: How much Gold do you own and why?

Post by bogledogle »

Have a pile of physical gold. For cultural reasons.
mptfan
Posts: 7201
Joined: Mon Mar 05, 2007 8:58 am

Re: How much Gold do you own and why?

Post by mptfan »

EnjoyIt wrote: Thu Jul 29, 2021 12:32 pm 3) Gold coins are pretty to look at and feel good in my hand
I agree.
Keenobserver
Posts: 1043
Joined: Thu Aug 13, 2015 1:05 pm

Re: How much Gold do you own and why?

Post by Keenobserver »

3 % of porfolio..no choice. the fund I have is setup that way. I dont mind it.
Last edited by Keenobserver on Thu Jul 29, 2021 1:00 pm, edited 2 times in total.
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: How much Gold do you own and why?

Post by Toons »

Da5id wrote: Thu Jul 29, 2021 10:48 am
Always passive wrote: Thu Jul 29, 2021 10:45 am
Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Ok, but it feels like the thread then becomes "Create for me an echo chamber of believers to persuade me to do what I already want to do anyway"

:thumbsup :mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
260chrisb
Posts: 1278
Joined: Wed Apr 28, 2010 7:26 pm

Re: How much Gold do you own and why?

Post by 260chrisb »

Zero.
surfstar
Posts: 2853
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: How much Gold do you own and why?

Post by surfstar »

Toons wrote: Thu Jul 29, 2021 12:59 pm
Da5id wrote: Thu Jul 29, 2021 10:48 am
Always passive wrote: Thu Jul 29, 2021 10:45 am
Toons wrote: Thu Jul 29, 2021 10:39 am None
Non producing Asset


:happy
If you do not invest in gold, please do not answer. I am looking for reasons to invest and not why not invest.
Ok, but it feels like the thread then becomes "Create for me an echo chamber of believers to persuade me to do what I already want to do anyway"

:thumbsup :mrgreen:
Literally the topic is titled "How much Gold do you own and why?"
OP, Toons answered your question.

I'm with Toons. $0 - because it is not a useful asset, IMO.
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: How much Gold do you own and why?

Post by Toons »

That was,and still is the question
Thanks For Clarification

:mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
wwtraveler
Posts: 64
Joined: Sun Apr 21, 2019 5:15 pm

Re: How much Gold do you own and why?

Post by wwtraveler »

Assuming you are based in the USA and you are mostly subject to the laws of the USA and your wealth is in USD then NO until you reach really high net worth.

For everyone else (IMO) like if you have $100-$10K of gold (physical or not) you are just trading and investing is all. You aren't hedging anything meaningful in your life most likely.

If you lived in a smaller country with a smaller currency then maybe some hedging in gold (physical or investment) makes sense. This was especially true in the pre EURO days. Once you had a moderate net worth did it make sense to hedge 10-15-20% of your holdings to gold? Sure depending on the size of the country and stability. Of course if you were that worried, then are you worried about someone showing up at the house and confiscating it? (think iron curtain countries)

That's sort of where I am with crypto too. If you are escaping a war torn area then gold or crypto may make sense. One is physical so there's the issue of how to move it and showing up at a border with it but the other is very clandestine in that regards but you could lose the key/device/wallet so there's that.
bigskyguy
Posts: 406
Joined: Sat Jan 24, 2015 3:59 pm

Re: How much Gold do you own and why?

Post by bigskyguy »

3% of a portfolio, and we are well into the withdrawal phase of our investing lives. This is available should we experience a true national economic/political catastrophe (true hyperinflation) and needed to relocate to be with family in Western Europe. We live within 2 hours of the northern US border. As one who has lived in unstable places in my younger years (Peru, Ethiopia), stability is not inevitable. As Hemingway wrote in the Sun also Rises, bankruptcy (and other disasters) can and does occur gradually, then suddenly. Having 3% of our portfolio in an asset that we have in our possession and is recognized worldwide as a physical store of value (as opposed to crypto or fiat currency) is nothing more than insurance. We are invested in gold not for growth, but for security (similar to our 3% cash equivalent emergency fund). I will admit that I am influenced mightily by Bill Bernstein - advise you read his book "Deep Risk" if you wish to better understand my perspective.

Joe
JayDee37
Posts: 263
Joined: Sun Jan 17, 2021 1:08 pm
Location: California

Re: How much Gold do you own and why?

Post by JayDee37 »

I have a small (5%) precious metals allocation as a diversifier. This is split between a gold-backed ETF and physical precious metals (several ounces, nothing spectacular). The ETF is for ease and for rebalancing, the physical PM is because I like it. It's pretty and shiny and heavy and feels nice to touch and it gives me pleasure and satisfaction to know it's mine. Maybe I was a pirate in a past life. It also functions as kind of a last-ditch emergency fund, not because I anticipate a Mad Max scenario (and in any case I tend to agree that food/water/gas/firearms/ammo would be more useful in those situations), but because if my life really goes sideways I can always take some of my "pieces of eight" to a local metals dealer and get some cash.

I became more aware of gold when playing around with Portfolio Charts and Portfolio Visualizer and examining some of the "official" portfolios experts have put together. The Permanent Portfolio and the Golden Butterfly caught my eye. Yes, I know that the conditions under which the high allocations to gold in those portfolios did well were specific to their historical periods (past performance does not guarantee future results), that gold is a non-producing asset, etc. But I find it compelling that those portfolios maintained a decent average return while reducing the spread of possible outcomes. I am thinking of transitioning to the GB as I get closer to retirement. Right now I am still ~20 years out, and due to a late start saving/investing I have a high need to take risk to have a chance of meeting my goals, so that means lotsa equity exposure. But as I get closer to retirement I anticipate that either my need (things have gone well, I have won the game!) or my ability (things have gone poorly, I have to protect what I have have left) to take risk will decline. At that point I will take a hard look at the GB as a way to mitigate SORR and have a more defensive allocation.
Tell me, what is it you plan to do with your one wild and precious life? | ~Mary Oliver
Bear906
Posts: 110
Joined: Fri Mar 12, 2021 12:07 am

Re: How much Gold do you own and why?

Post by Bear906 »

gwe67 wrote: Thu Jul 29, 2021 10:59 am
TomatoTomahto wrote: Thu Jul 29, 2021 10:54 am I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
I was without electricity and running water for a week, and nobody was bartering with precious metals. People were desperately seeking gasoline, generators, drinking water, food and firewood. But not metals. Even if the situation had gone on for months, I'm sure that metals would still have been of little trade value.
This.

I do set aside all the non-zinc American and Canadian 1-cent coins that come my way, though. If a total social and economic collapse lasts long enough to render fiat currency worthless and we're all in complete do-anything-to-survive mode, at least I can make arrowheads and other useful articles for survival and barter out of the copper. Gold won't be of much use to anyone at that point.
Eschew obfuscation.
mptfan
Posts: 7201
Joined: Mon Mar 05, 2007 8:58 am

Re: How much Gold do you own and why?

Post by mptfan »

bigskyguy wrote: Thu Jul 29, 2021 1:27 pmThis is available should we experience a true national economic/political catastrophe (true hyperinflation) and needed to relocate to be with family in Western Europe.
If the stuff really hit the fan and society broke down, I would rather have a store of guns and ammunition than a store of gold. I certainly wouldn't want to be passing out gold coins or gold bars, that would put a target on my back.
Pu239
Posts: 593
Joined: Mon Dec 17, 2018 5:24 pm

Re: How much Gold do you own and why?

Post by Pu239 »

Less than 1%. It's pretty, has historical significance when collected by year and is probably the closest thing we have to universal money.
Between the idea And the reality...Between the motion And the act...Falls the Shadow - T. S. Eliot
ronno2018
Posts: 567
Joined: Sat Apr 14, 2018 9:31 am

Re: How much Gold do you own and why?

Post by ronno2018 »

I have half a kilogram in a physical gold ETF that has done well since I bought it but I only have it because I need 10% alternatives in the model portfolio I am following (most of the alternative category is VNQ REIT). I think I will sell it and get some battery metals.

I did buy a nice "gold" watch the other day -- https://www.cadisenwatch.com/cadisen-c8185 (on sale for $90)!!! :sharebeer
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: How much Gold do you own and why?

Post by exodusNH »

Gentlermadness wrote: Thu Jul 29, 2021 12:39 pm I own 5%, I had 10% as an emergency fund. With the recent (last year) accelerated printing and US spending spree I did not feel comfortable keeping a 10% Emergency fund in cash. I bonds are a possibility for me but I went with physical gold, basically due to lack of faith that US government would not manipulate things if there was a crisis. Same reason I have for not putting all my eggs in TIPS etc. It basically was/is a vote of no confidence in US govt. The US still is the best place for me personally for the remainder of my portfolio (Total stock/total bond) but I wanted my Emergency fund to be diversified outside of US control. FYI I also diversified into crypto with 3 percent. So EF is 2% cash, 3% crypto, 5% physical gold.

I view it as not part of my portfolio that is going to grow. It is sleep well at night money. My job is very stable and very low likelihood of needed an EF(stable income, no debt, 1 year food, able to bike to work if needed) My expenses if i need to cut back are extremely low.
https://www.youtube.com/watch?v=K3lP3BhvnSo
SaucedUp
Posts: 26
Joined: Mon Jul 26, 2021 5:48 am

Re: How much Gold do you own and why?

Post by SaucedUp »

TomatoTomahto wrote: Thu Jul 29, 2021 10:54 am I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
Who barters with precious metals at all? If that was the purpose why not gold?
Doctor Rhythm
Posts: 3034
Joined: Mon Jan 22, 2018 2:55 am

Re: How much Gold do you own and why?

Post by Doctor Rhythm »

Reasons to invest in gold (rather than in other securities): fear and politics. Other than the the wedding band in my soap dish and a krugerrand in my underwear drawer, I don’t own gold.

SaucedUp wrote: Thu Jul 29, 2021 1:44 pm
TomatoTomahto wrote: Thu Jul 29, 2021 10:54 am I don’t own physical gold, but I do have a bit of physical silver. I bought it during the most unsure period of early COVID, not as an investment but in case I needed it for swap/barter. It still sits in my safe.
Who barters with precious metals at all? If that was the purpose why not gold?
My Dungeons & Dragons party bartered 500 silver pieces for a +2 mace and shares of VTSAX.
Last edited by Doctor Rhythm on Thu Jul 29, 2021 1:56 pm, edited 1 time in total.
User avatar
retired@50
Posts: 12707
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: How much Gold do you own and why?

Post by retired@50 »

SaucedUp wrote: Thu Jul 29, 2021 1:44 pm Who barters with precious metals at all? If that was the purpose why not gold?
If you're in a barter situation, gold could work, but if all you're trying to do is buy a loaf of bread or a tank full of gasoline, you might be in an uncomfortable position due the the value of a simple one ounce coin or ingot. If gold is trading for $1,800 an ounce, how is the seller supposed to make change? :shock:

Using smaller denominations or less valuable coins (silver) could ease small exchanges of value.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Locked