Gold as an inflation hedge given the current madness?

Ronald Morris

Back to forum

📊 Economy

Gold as an inflation hedge given the current madness?

ronald_morris👑Elite (1m-5m)

about 6 hours ago

Key Takeaways

•My portfolio is sitting comfortably in the low 7-figure range, and about 15% of that is in gold.
•Based out of Virginia Beach, I've seen housing prices here go absolutely wild, not to mention the consumables.
•It's not just the CPI numbers; you feel it at the grocery store, at the pump, even when trying to book a contractor for home repairs.

Get the free Gold IRA guide

I've been holding a pretty significant chunk of my portfolio in physical gold and a few gold-backed ETFs (GLD, IAU) for the better part of two decades now, originally as a hedge against currency debasement when I first started diversifying beyond standard market plays. Call it the Admiral in me, but I always preferred a tangible asset over promises, especially after seeing global economic shifts firsthand during my Navy career. Now, with all the talk about inflation – not just transient, but potentially sticky and a real threat to purchasing power – I'm honestly weighing if my current allocation is enough.

My portfolio is sitting comfortably in the low 7-figure range, and about 15% of that is in gold. Based out of Virginia Beach, I've seen housing prices here go absolutely wild, not to mention the consumables. It's not just the CPI numbers; you feel it at the grocery store, at the pump, even when trying to book a contractor for home repairs. This current inflationary environment feels different from past cycles. It’s got me seriously considering bumping my gold allocation up to closer to 20-25%. My accountant usually balks at anything over 15% for alternative assets, but after watching the Fed print money like there's no tomorrow, it’s hard not to feel a bit exposed.

Looking back, gold performed admirably during the high inflation of the 70s, which is a historical precedent I keep coming back to. But some of the younger analysts I've consulted with argue that this time is different, with new asset classes and a globalized economy that might not react the same way. It begs the question: are we overestimating gold's inflation-hedging capabilities these days, or is the historical correlation still a reliable indicator? I'm curious to hear from others who are navigating similar concerns. What are your personal strategies for protecting against inflation right now, particularly with precious metals? And for those with substantial gold allocations, have you adjusted your percentages recently?

3 comments

The Fed can't print gold — that's the point

Learn why retirees are moving savings into physical metals. Free investor kit.

Under $100k? Compare options →

25 people viewed this today3 members requested a free kit this week3 investors bookmarked this

Best Answer▲ 6 upvotes

brian_edwards🌟Ultra (5m+)

Interesting strategy sticking with gold for so long, especially with the GLD/IAU ETFs. Out of curiosity, have you ever considered venturing into any of the junior mining stocks or royalty companies as another way to get exposure? Or do you prefer to keep it strictly to the physical and direct gold-backed stuff?

Comments (3)

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

Totally feel this. I've had a similar experience, though maybe not as long as two decades! I started looking harder at gold about 5-6 years ago when I just had a gut feeling things were getting a bit wobbly economically. It's been a surprisingly solid anchor in my portfolio, especially with all the ups and downs lately. The peace of mind alone is worth something, even if the returns aren't always stellar.

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

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

Interesting perspective. While I generally agree with gold's role as a long-term hedge, I'm not entirely convinced it's the *most* effective inflation hedge in all scenarios, especially short-term. We've seen periods where inflation spikes but gold doesn't always keep pace, or even dips. It feels more like a store of value against *extreme* economic instability rather than a consistent, direct inflation counter-punch. Just my two cents.

Worried about inflation eroding your savings?

See how a Gold IRA can hedge your portfolio. Free guide, no obligation.

Under $100k? Compare options →