Anyone else seriously reconsidering their gold exposure with inflation numbers?
- •Okay, so that CPI report today was just...
- •Not gonna lie, it's got me thinking a lot harder about my gold positions.
- •My concern isn't just the headline number, but the stickiness of it.
Okay, so that CPI report today was just... something else. Not gonna lie, it's got me thinking a lot harder about my gold positions. I’ve had about 10-15% of my portfolio in gold for the last decade, primarily in my IRA – mostly physical American Gold Eagles and some Perth Mint bars stored with Delaware Depository. It's always felt like a good, solid hedge, especially after seeing what happened in the 70s (my dad was big into dairy farming too, and he saw some crazy swings back then).
My concern isn't just the headline number, but the stickiness of it. Wages, energy, freight costs – it all seems to be building up. We run a decent-sized dairy operation near Madison, and our feed costs alone have been through the roof. It’s hard to pass all that on to the consumer, but eventually, someone pays. It just feels like everything is getting pricier, and not in a temporary way.
I’m sitting on about $700k in my total portfolio, and a good chunk of that is retirement funds. My gold holdings currently sit somewhere around $80k-$90k. I’m seriously contemplating bumping that up to 20%, maybe even 25% over the next 6-12 months. My thought process is if true inflation starts to bite, those physical assets are going to be a lot more comforting than pieces of paper. Anyone else in a similar boat, feeling the pinch and considering increasing their gold allocation? Or am I being overly paranoid after a lifetime of watching commodity prices?
For those who have been through periods of high inflation, what did you find was the most effective way to protect your purchasing power? Is gold still the undisputed king, or are there other strategies I should be looking at? I’m curious about what others are doing with their gold IRAs, especially if you're holding physical like me.