How important is gold for your investment portfolio?

[BuckyBadger]

I agree. Short of something unforeseen like a meteor strike or a plague of somekind from a virus, then it will probably be life as usual.

Or, of course, when this comes to pass:

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[aditi]

MKK Shah

From two month gold is part of my investment and i am getting profit. but ya it's not always necessary that you will get proper return always. Gold is an saving instrument but now a days it's become investment tool. gold is giving maximum return and it can be part of your portfolio,

[thekid]

I'm canadian and hold about 30%-35% of my stock portfolio in TSX (Toronto stock exchange) index funds, which has a heavy weight of natural ressources and precious metals stock (mostly mining companies for metals). I don't need or want any more exposure than this indirect one and have been selling to rebalance as the TSX has done really well until last year.

That said, the reasonning for gold as I understand it is mostly as a hedge on inflation. Historically, iirc, gold has acted as a very good inflation hedge (rises quickly in times of inflation). Not sure if it would hold true should the economy go into hyperinflation (I think alot of that is already priced in to the recent runup on gold prices). In any event, betting the farm on hyperinflation is gross speculation and actually most of us know how steady well diversified portfolios do compaired to speculators.

[97guns]

i'll keep speculating as a retiree while you guys punch the clock today.

[disneysteve]

i'll keep speculating as a retiree while you guys punch the clock today.

I have a serious question for you.

You retired with a 300K net worth. Half of that is in gold which doesn't generate any return or current income. That means you are living on the income generated by 150K in assets. Even if you get a 10% return, that's only 15K/year. How are you living on that amount? I think it would be pretty educational to folks here to hear how you get by on such a low income.

[97guns]

I have a serious question for you.

You retired with a 300K net worth. Half of that is in gold which doesn't generate any return or current income. That means you are living on the income generated by 150K in assets. Even if you get a 10% return, that's only 15K/year. How are you living on that amount? I think it would be pretty educational to folks here to hear how you get by on such a low income.

i'd love to share.....first your math must be revised, the 300K has gone to income producing real estate that draws 10-12% for me. i took a calculated risk 2 years ago and went ALL IN, the home i live in is free and clear, all my funds go to metal every month after bills are paid. i started buying silver 2 years ago at 16-18, right now my metal portfolio is valued at 233K, my father did give me 30K to invest and it has gone into the metal pot.. im no mathematician but i think my net worth has been on a huge run in the past 2 years.

i know someone here can pick my numbers apart and tell me it is not possible, it may seem like im only here to brag and make myself look good by stretching numbers but this is not my agenda. im here to educate and possibly open eyes of some people that i know are not educated on the fiat dollar system. i urge you all to just google and search about the state of the fiat system worldwide and you will quickly understand my stance.

[thekid]

i'd love to share.....first your math must be revised, the 300K has gone to income producing real estate that draws 10-12% for me. i took a calculated risk 2 years ago and went ALL IN, the home i live in is free and clear, all my funds go to metal every month after bills are paid. i started buying silver 2 years ago at 16-18, right now my metal portfolio is valued at 233K, my father did give me 30K to invest and it has gone into the metal pot.. im no mathematician but i think my net worth has been on a huge run in the past 2 years.

i know someone here can pick my numbers apart and tell me it is not possible, it may seem like im only here to brag and make myself look good by stretching numbers but this is not my agenda. im here to educate and possibly open eyes of some people that i know are not educated on the fiat dollar system. i urge you all to just google and search about the state of the fiat system worldwide and you will quickly understand my stance.

congratulations on "going all in" on an asset whose price has soared in such a manner that it smells of tulips.

Going all in is great when you guess right. It really sucks when your luck turns. It's extremely dangerous to be this concentrated on an asset class (i'd say particularly one that has appreciated as much). Things tend to revert to means.

[MKKShah]

i'd love to share.....first your math must be revised, the 300K has gone to income producing real estate that draws 10-12% for me. i took a calculated risk 2 years ago and went ALL IN, the home i live in is free and clear, all my funds go to metal every month after bills are paid. i started buying silver 2 years ago at 16-18, right now my metal portfolio is valued at 233K, my father did give me 30K to invest and it has gone into the metal pot.. im no mathematician but i think my net worth has been on a huge run in the past 2 years.

i know someone here can pick my numbers apart and tell me it is not possible, it may seem like im only here to brag and make myself look good by stretching numbers but this is not my agenda. im here to educate and possibly open eyes of some people that i know are not educated on the fiat dollar system. i urge you all to just google and search about the state of the fiat system worldwide and you will quickly understand my stance.

Have you considered selling the gold, and moving into more real estate? Or do you think Gold will still rise compared to the dollar?

[MKKShah]

congratulations on "going all in" on an asset whose price has soared in such a manner that it smells of tulips.

Going all in is great when you guess right. It really sucks when your luck turns. It's extremely dangerous to be this concentrated on an asset class (i'd say particularly one that has appreciated as much). Things tend to revert to means.

I tend to agree with the tulip analogy. I am simply not able to see why gold is valued so much by the market. I can understand the problem in the olden days when "government" as we know it today did not exist. Counterfeiting of paper currency would have been a problem. Heck paper itself is around only for a few centuries. But what appeal does gold have beyond it's novelty / ornamental value?

I haven't been able to get an answer regarding this from the pro gold camp. I only hear that it's a "store of wealth", without an explanation of why it's so. Perhaps it's the greater fool theory?

[thekid]

I tend to agree with the tulip analogy. I am simply not able to see why gold is valued so much by the market. I can understand the problem in the olden days when "government" as we know it today did not exist. Counterfeiting of paper currency would have been a problem. Heck paper itself is around only for a few centuries. But what appeal does gold have beyond it's novelty / ornamental value?

I haven't been able to get an answer regarding this from the pro gold camp. I only hear that it's a "store of wealth", without an explanation of why it's so. Perhaps it's the greater fool theory?

It's hard to tell a bubble before it has popped. Maybe it is, maybe it isn't. I don't actually know. Since I don't actually know the future, my best hedge on that uncertainty is to be diversified.

However, I generally tend to not like things that have appreciated greatly after they have appreciated greatly.

[thekid]

As to why gold, I think the usual arguments is that it is of limited quantity (unlike paper money) and it has a long historical record as currency.

[97guns]

As to why gold, I think the usual arguments is that it is of limited quantity (unlike paper money) and it has a long historical record as currency.

[Mr Nice Guy]

i'll keep speculating as a retiree while you guys punch the clock today.

Your plan must not be working too well when you get excited over a $6000 tax refund. Keep in mind not all of us hate our jobs either.

[thekid]

I'm curious about the retiring at 39, what do you do all day?

I could see changing occupation, starting a business venture, but "retire"?

[97guns]

[QUOTE=thekid;319970]I'm curious about the retiring at 39, what do you do all day?
I could see changing occupation, starting a business venture, but "retire"?
[QUOTE]



anything i want, just got home from a 4 day gambling and silver buying road trip. i guess im alone with "wanting to be retired" im happy for you all that enjoy your work.