Fed rate decision and my portfolio - feeling the squeeze

Janet Cook

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Fed rate decision and my portfolio - feeling the squeeze

janet_cook📊Growing (50-100k)

about 5 hours ago

Key Takeaways

•Okay, so the Fed hiked rates again, no huge surprise there, but man, it still stings a bit looking at my portfolio today.
•I've been invested in my Gold IRA for about three years now.
•Started with around $40k, and it's been a pretty steady climb until recently.

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Okay, so the Fed hiked rates again, no huge surprise there, but man, it still stings a bit looking at my portfolio today. I've got about $70k in my Gold IRA right now, and while I know gold is supposed to be a hedge, these consistent rate increases definitely put pressure on everything else, even if indirectly. As a jewelry store owner here in Providence, I'm constantly watching metal prices, and frankly, I sell a lot less gold to consumers when the economy feels this tight.

I've been invested in my Gold IRA for about three years now. Started with around $40k, and it's been a pretty steady climb until recently. I know the conventional wisdom about gold performing well in uncertain times and during inflation, but with the Fed seemingly determined to keep tightening, I'm starting to wonder if I should be re-evaluating my allocation. I mean, my stock holdings, what's left of them outside the IRA anyway, are just getting battered.

I was actually just looking at the "Silver vs Stocks" tool on Gold IRA Blueprint (https://silvervsstocks.goldirablueprint.com/?period=10Y) for the past 10 years, and it's a stark reminder of how volatile stocks can be compared to precious metals. Silver's had its ups and downs too, of course, but that long-term comparison is pretty compelling right now. I've mostly stuck with gold, with a little bit of platinum, but I'm debating adding more silver into the mix – maybe convert some of my existing gold holdings over.

Anyone else feeling this way? Are high interest rates making you reconsider your precious metals strategy? Is it smarter to hold tight and wait for the inevitable pivot, or should I be looking at diversifying within my precious metals even further, perhaps more into silver? I know the Fed has a tough job, but it feels like we're just getting squeezed from all sides sometimes.

5 comments

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Best Answer▲ 10 upvotes

maria_campbell📊Growing (50-100k)

Totally get what you mean! I feel that squeeze too. My Gold IRA is around $85k, and while it's been the most stable part of my portfolio lately, seeing everything else dip because of these rate hikes is definitely a gut punch. It's like watching a slow-motion car crash sometimes, even if you're in the safest car.

Comments (5)

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

Totally feel this. I'm in a similar boat, though with a smaller chunk in my Gold IRA. After the last hike, I was definitely eyeing my 401k with a bit more trepidation. It's that ripple effect across the whole portfolio that really gets you, even when you expect it. Just gotta keep the long game in mind, I guess!

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

Totally get that feeling, it's like a constant low-level anxiety. Quick question though, when you say "everything else," are you referring specifically to other assets in a separate investment account, or are you seeing the pressure impact your gold holdings even within the IRA?

ashley_baker💼Starter (0-50k)✓ Verified•less than a minute ago

Totally get the feeling of getting squeezed, especially when it feels like everything's taking a hit. But with a Gold IRA, I actually tend to think of rate hikes a bit differently. Sure, higher rates can make other assets more attractive in the short term, potentially drawing some away from non-yielding assets like gold. However, these hikes are also often a reaction to inflation or an attempt to cool an overheating economy. In those scenarios, gold's role as a long-term inflation hedge or safe haven can become even more pronounced as traditional investments become more volatile or lose purchasing power over time. It's less about the immediate reaction and more about the bigger picture of what those rate hikes imply for the economy down the line. Keep that long-game perspective!

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

Hey, I hear you, it's definitely a weird time for portfolios. One thing I found super helpful lately is keeping an eye on the real interest rates, not just the nominal ones. When inflation's high, even if rates go up, gold can still perform well because its *real* yield (nominal rate minus inflation) might still be negative or low. It's not a perfect predictor, but it adds another layer to understanding how gold might react.

Here's a good article that breaks it down a bit more: https://www.sprottmoney.com/blog/real-interest-rates-and-gold-prices-a-closer-look