How important is gold for your investment portfolio?

[seen]

anything i want, just got home from a 4 day gambling and silver buying road trip.

A bit off topic, I know of people who quit their jobs with next to no net worth/income, to travel the country and basically live off the good graces of others. Granted, they were in their early 20’s but I digress. Then there are those who happily own a business, not having to answer to anyone but their own actions. I think the true American dream is to be free to do whatever you want. My hat’s off to you for achieving that feeling at your age. Congrats.

I hope to have that feeling myself someday before I get old. Unfortunately my thirst for wealth isn't easily quenched.

[disneysteve]

the 300K has gone to income producing real estate that draws 10-12% for me. all my funds go to metal every month after bills are paid.

So 10-12% on 300K is 30-36K/year. From that you pay all of your living expenses and have money remaining to invest in metals (which generate zero income). You're living pretty lean, which is great, but I assume you are single and childless and live in a low COL area. My property tax alone would eat up at least 20% of your income for a pretty modest old house.

[ecoadapt]

0% gold - I personally wouldn't invest in it.

{A mutual fund that invests in commodoties - maybe - but only for a small portion of my portfolio. It's not important enough to have done it thus far. If it's not inside a retirement account, gold has higher taxes than most any other investment}.

I also won't invest in it. Well, I just think it's not necessary at all.

[thekid]

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.

I can see the appeal of retiring early, but I'd think more in terms of being in your 50s....and even then, I'd see it more as a semi-retirement. It's not about loving my work, it's about being/feeling productive. I'm 34, I don't want to not work at my age. I could like to mix up what I do at some point, but do want to work quite a number more years.

Do you have a family, kids? $300k net worth seems extremely low to live off starting at 39. If it works for you, that's great. Your life, you live it like you want in a way that brings you the most hapiness. At the same time, it's also quite understandable that most would not like to retire so young period and if they did, not on that amount.

[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.

[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"?

[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.

[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.

[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.

[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.

[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?

[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?

[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.

[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.

[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.