Inflation fears vs. gold demand - real concern or just
- •Caught myself doomscrolling the headlines this morning, and it's all "inflation fears" this, "recession warning" that.
- •It's got me thinking about my own portfolio, specifically the chunk I've got tied up in physical gold and my Gold IRA.
- •My gut tells me this current inflation isn't just transitory.
Caught myself doomscrolling the headlines this morning, and it's all "inflation fears" this, "recession warning" that. It's got me thinking about my own portfolio, specifically the chunk I've got tied up in physical gold and my Gold IRA. I’ve been building my real estate portfolio for decades here in Aspen, but the past few years, with all the money printing, I've really leaned into precious metals as a hedge. Before 2020, I was probably 5% metals, now it's closer to 15-20% of my non-real estate liquid assets – probably around $750k-$1M invested in gold and silver, not including what's in the IRA.
My gut tells me this current inflation isn't just transitory. We're seeing it everywhere, from building materials for my projects to the price of a decent dinner up here. I’ve always viewed gold as insurance, a store of value when the dollar gets shaky. When I look at tools like the Gold vs Stocks Comparison on a 10-year period, it just reinforces that feeling. While my stocks have done well overall, gold has definitely held its own and provided that diversification I sought. It's not about making a quick buck for me with gold; it's about protecting wealth my family and I have built.
So, for those of you also heavily invested in precious metals, are these current inflation headlines making you double down, or are you holding steady? Is the increased demand for gold we're seeing truly a reflection of widespread inflation anxiety, or is it more of a knee-jerk reaction from newer investors? I’m always curious what other long-term holders are thinking. I've always been more of a "buy and hold" guy, especially with hard assets, but this current economic climate feels a bit different than past cycles.