Fed rates and my Gold IRA - anyone else feeling this?

Mark Adams

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Fed rates and my Gold IRA - anyone else feeling this?

mark_adams👑Elite (1m-5m)

about 3 hours ago

Key Takeaways

•Okay, so another rate hike from the Fed, and honestly, I'm finding myself doing more than my usual mental gymnastics with the portfolio.
•My primary gold allocation is sitting in a fairly robust IRA, about 15% of my 3M book, mostly in physical bars I had delivered years ago.
•Now, I'm watching these market reactions, the usual volatility, but this feels different.

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Okay, so another rate hike from the Fed, and honestly, I'm finding myself doing more than my usual mental gymnastics with the portfolio. My primary gold allocation is sitting in a fairly robust IRA, about 15% of my 3M book, mostly in physical bars I had delivered years ago. Now, I'm watching these market reactions, the usual volatility, but this feels different. The stability I banked on with gold for the past few years seems to be taking on a new dimension with these aggressive hikes.

I mean, part of me is leaning into the traditional wisdom, right? Gold as a hedge against inflation, and we're definitely seeing that. But then there's the opportunity cost argument, especially with rates where they are. Cash is looking more attractive, and the bond market, while still a bit wonky, is offering yields I haven't seen in ages. My office in Greenwich is buzzing with talk about capital reallocation, and it's making me second-guess whether I should be holding as much gold as I am, or if I should consider paring some back to jump into some short-term notes.

I initially went heavy on gold back when the writing was on the wall for QE infinity, thinking the dollar was going to get absolutely nuked. It's done well, don't get me wrong. I'm up a decent clip on my original cost basis, probably hovering around 25-30% depending on the day. But now, with inflation potentially peaking and the Fed still hawkish, is the narrative changing for gold? What are you guys doing with your precious metals allocations? Are you holding firm, or are you looking to rebalance given the current rate environment?

Specifically, for those of you with significant gold holdings in IRAs, are you just riding it out, or are you actively exploring diversification within your tax-advantaged accounts? I’m genuinely curious about different strategies here. My gut says stay the course for now, but my analyst brain keeps running scenarios where I could be deploying that capital elsewhere for better short-term gains.

4 comments

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Best Answer▲ 9 upvotes

gary_stewart📊Growing (50-100k)

I hear you on the rate hikes and the mental gymnastics, but I'm actually not feeling the same kind of stress with my gold right now. My perspective is a little different – I tend to view physical gold as less about immediate market reactions to Fed moves and more as a long-term, foundational hedge against systemic instability and inflation, which these rate hikes might actually be trying to control, but not always successfully. So while the short-term might be choppy, the core thesis for why I hold gold in my IRA hasn't really changed.

Comments (4)

thomas_walker🏆Advanced (250-500k)Real Investor✓ Verified•less than a minute ago

Been there, felt that! Had a similar moment a few years back during a particularly volatile rate hike period. I've got a decent chunk of my retirement in a Gold IRA too, mostly coins. The initial gut punch of seeing the market react was real, but in the long run, it ended up being a good hedge for me. Definitely makes you re-evaluate, though!

brian_edwards🌟Ultra (5m+)Real Investor✓ Verified•less than a minute ago

Hey, totally feel you on the mental gymnastics. Quick question on your physical gold, though: when you say "delivered years ago," does that imply you're storing it yourself or with a depository? Just curious how that factors into your current thinking with all the rate hike noise.

gary_stewart📊Growing (50-100k)•less than a minute ago

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

Totally get what you mean. It feels like a constant game of chess with the Fed these days. Since you're holding physical bars, you might find it helpful to keep an eye on gold's relationship with real interest rates – that's the nominal rate minus inflation. When real rates are low or negative, gold tends to do well because its non-yield characteristic is less of a disadvantage. Here's a decent article explaining it: Gold and Interest Rates Explained

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