robnplunder
Thinks s/he gets paid by the post
I need to balance my portfolio a bit and am looking at investing in gold ETF for long term. What do others think about buying gold now?
I've never run into this issue with my two Au ETF's.Be aware that to fund their operation many precious metals funds sell a small amount of their holdings monthly. For income tax purposes these sales are passed to each fund holder to report on their tax returns. The data about these sales is not released until March or April, delaying tax filing. In addition you may find the necessary gain/loss calculations tedious, especially if you've bought into the fund on separate occasions.
I need to balance my portfolio a bit and am looking at investing in gold ETF for long term. What do others think about buying gold now?
That's a nice commercial for physical gold services.Gold ETFs are not a good long-term investment, but they can be useful under certain circumstances. Whenever you buy, Gold is always highly speculative and is not really an 'investment' in the traditional sense as much as it is a commodity. One of the problems with ETFs is that they usually hold futures contracts - orders for future Gold purchases - that would be impossible to fill in the event of a total market crash. Here's an article that explains it... There's no reason to own a gold ETF - Business Insider
Physical Gold (and precious metals and diamonds) is a traditional hedge against currency deflation and a physical storage of intrinsic value. (vs. the extrinsic value of currency). I consider it more of an insurance policy, that many will argue is of dubious value - until **** hits the fan. I didn't start to buy physical Gold and Silver until I felt we had enough other assets invested and working for us to be comfortable. It was one of the final pieces of our diversification/asset protection strategy in retirement - a decent portion of our savings account money that we didn't want to keep in the bank.
Many wealthy investors will keep a percentage of their assets in physical Gold and rebalance periodically. There are several different ways to do this, and it's worth doing some homework if you're interested. Here's a video of one famous investor you'll recognize and his strategy:
I agree with this other than I don't consider Au a commodity since hardly any of it is consumed but rather held & recycled at 99%+. Its beauty gives it intrinsic value.IMO gold isn't really an investment but more of a hedge against inflation and rampant uncertainty in financial markets and political systems.
That said I have no problem with a small holding in gold, precious metals and other hard asset commodities, say up to 5% of a portfolio, provided one understands why they hold it and what role they expect it to play.
IMO gold isn't really an investment but more of a hedge against inflation and rampant uncertainty in financial markets and political systems.
That said I have no problem with a small holding in gold, precious metals and other hard asset commodities, say up to 5% of a portfolio, provided one understands why they hold it and what role they expect it to play.
interesting reading on the subject .
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"Our study demonstrates that adding gold to a typical/balanced portfolio has been beneficial across a wide range of allocations in terms of boosting risk-adjusted returns. Unexpectedly, over the 43 years studied, the optimal allocation has actually been 25% to gold and 75% to a balanced portfolio, representing a mix of roughly 45% stocks, 30% bonds, and 25% gold. In fact, investors could have allocated as much as 45% to gold based on historical analysis and still fallen on the frontier of efficient portfolios that dominate holding a pure balanced fund. "
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at the moment i own no gold .
Gold diversification | Creating a more optimal portfolio allocation | Proactive Advisor Magazine
i have my fun money i like to speculate with and for me gold has been all about timing the markets not time in the markets . i have traded in and out of gld 30x this year generating profits of about 28k . it has been my biggest gainer in my fun money category .
How can you bribe a border guard with an ETF?
Buy some bullion or coins instead.
How can you bribe a border guard with an ETF?
Buy some bullion or coins instead.