Fed rate hikes & gold: My take from the Strip, checking in on my Gold IRA

Dorothy Lopez

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Fed rate hikes & gold: My take from the Strip, checking in on my Gold IRA

dorothy_lopez💰Established (100-250k)

about 1 hour ago

Key Takeaways

•Okay, so I've been watching the Fed like a hawk, same as everyone else.
•Powell’s hawkish talk has me thinking about my Gold IRA.
•Been in the casino industry out here in Vegas for like 25 years, so I understand risk and a good hedge.

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Okay, so I've been watching the Fed like a hawk, same as everyone else. Powell’s hawkish talk has me thinking about my Gold IRA. Been in the casino industry out here in Vegas for like 25 years, so I understand risk and a good hedge. Started building up my gold position about three years ago, when things started looking a bit dodgy globally, and I finally funded my Gold IRA with around $150k a year and a half back. My portfolio is probably sitting just under $200k now, so it’s a pretty decent chunk of my retirement savings.

My initial thought was that with inflation running hot, gold would be having a field day. But these rate hikes have definitely put a damper on things, right? I mean, a stronger dollar makes gold more expensive for international buyers, and those rising yields on Treasuries make gold less attractive since it doesn't pay interest. It's a classic push-pull. I'm wondering if I misjudged the Fed's willingness to go all-in on fighting inflation, even if it means potentially slowing down the economy. I’ve seen enough ups and downs on the Strip to know that sometimes the safest bet isn’t hitting on 20, but it still makes you wonder.

I’m really curious to hear what other folks holding significant amounts of physical gold or in Gold IRAs are doing or thinking. Are you holding tight, or contemplating rebalancing if the Fed keeps this aggressive stance? I'm personally inclined to ride it out; gold has always been a long-term play for me, and I view it as insurance. But it's still frustrating to see it not performing as strongly as some other assets right now, especially when I'm watching the numbers.

What are your long-term predictions for gold if the Fed holds steady with these rate hikes, or perhaps even reverses course later in the year? Any Vegas locals in here with similar portfolio sizes feeling the same pinch? Always good to get some diverse perspectives, especially from folks who’ve been in this game longer than I have.

4 comments

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Best Answer▲ 10 upvotes

timothy_reed💎Premium (500k-1m)

Totally get the casino analogy for understanding risk – that's a great way to put it. Out of curiosity, when you say you started building up your gold position three years ago, was that mostly physical gold or also some gold-backed ETFs within your IRA?

Comments (4)

james_wilson👑Elite (1m-5m)Real Investor✓ Verified•less than a minute ago

Totally feel this. Similar boat here, though not in Vegas, haha. Remember back in '08, right before everything went sideways, I started looking into gold purely as a "what if" hedge. My dad had always talked about it, but I never really got it until that point. Glad I did, it's been a solid anchor in some pretty choppy waters since then. The Fed stuff always makes me double-check my portfolio, too.

timothy_reed💎Premium (500k-1m)Real Investor•less than a minute ago

carol_carter💰Established (100-250k)Real Investor•less than a minute ago

Interesting take, and it's smart to be looking at the bigger picture with your Gold IRA. I can definitely see why the Fed's hawkish stance would make you double down on gold as a hedge, especially with your background.

However, I'm not entirely convinced that Powell's rhetoric automatically translates to a sustained surge for gold. Sometimes the market has a funny way of pricing things in even before the real action happens, and gold's relationship with interest rates can be more nuanced than a simple inverse. Just something to consider alongside the casino floor wisdom!

jason_morgan💰Established (100-250k)Real Investor✓ Verified•less than a minute ago

Interesting perspective from Vegas! It's always great to hear from folks who truly understand risk like you do. Given your focus on hedging, you might find it useful to dive into some of the more detailed analyses out there on gold's performance during different Fed tightening cycles. The World Gold Council has some pretty solid research on this that could complement your observations from the Strip.

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