Paper gold vs. Physical. What's everyone's conviction right now?

Brian Edwards

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Paper gold vs. Physical. What's everyone's conviction right now?

brian_edwards🌟Ultra (5m+)

about 2 months ago

Key Takeaways

•I know this conversation comes up periodically, but I'm curious what everyone's current conviction is on the physical vs.
•I've been in physical for years now, probably 8-10% of my overall portfolio which clocks in just north of 5M.
•Most of my heavy metal holdings are in physical gold and silver because, well, it's physical .

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I know this conversation comes up periodically, but I'm curious what everyone's current conviction is on the physical vs. paper gold debate. I've been in physical for years now, probably 8-10% of my overall portfolio which clocks in just north of 5M. I'm a real estate developer based out of Aspen, and while I love flipping properties and seeing tangible results, I do hold some paper assets, mainly dividend stocks. Most of my heavy metal holdings are in physical gold and silver because, well, it's physical. You can hold it, touch it, store it, and it's not some abstract number on a screen tied to the whims of some distant bank. Call me old school, but there's a certain peace of mind that comes with knowing I have something tangible tucked away, especially with all the market volatility we've been seeing.

My first big gold purchase was back in '09 when I snagged about 250k worth of Eagles. Now, with the way things are going, I'm genuinely considering converting some of my dividend stock gains into more physical. I've been using that Tax Calculator quite a bit lately to figure out the tax implications of divesting some of those paper assets. It’s been pretty helpful in visualizing the hit I'd take, but honestly, the peace of mind might be worth it. My wife thinks I'm being too paranoid, but she also wasn't around for '08, and she's not the one who works with capital tied up in projects that can swing wildly with interest rates.

I know the arguments for paper gold – liquidity, ease of storage, no insurance costs, etc. And yeah, I get it. But with the current global landscape, supply chain issues, geopolitical instability, and frankly, just a general feeling of unease about the traditional financial system, doesn't the appeal of physical gold just grow stronger? I'm talking actual bars and coins, not some ETF that theoretically tracks the price of gold without you ever seeing an ounce of it. Are there any other high-net-worth individuals here who are leaning heavily towards physical right now?

What are your personal breaking points for really leaning into physical? Is it market volatility? Inflation fears? Or something else entirely? I'm genuinely interested in hearing diverse perspectives on this one, especially from those who have a significant portion of their wealth tied up in heavy metals.

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5 comments

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Best Answer▲ 11 upvotes

matthew_murphy👑Elite (1m-5m)

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Comments (5)

andrew_roberts👑Elite (1m-5m)Real Investor✓ Verified•about 2 months ago

Totally get where you're coming from. I went through a similar shift myself. Had a chunk in a gold ETF for a while, just seemed easier. But after some reading and, honestly, a few too many news cycles making me nervous, I started converting my paper holdings to physical. Took a little while and felt like a hassle at first, but now that I've got a decent amount of actual coins and bars, the peace of mind is worth it. Feels more... real, ya know?

ruth_perez📊Growing (50-100k)•about 2 months ago

Sounds like you've got a pretty solid portfolio, especially with that real estate background. When you say "paper gold," are we talking ETFs like GLD or something else entirely, like futures contracts?

barbara_white🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Honestly, I'm almost always going to lean physical for the core of my gold holdings, but I've been giving some more thought to paper gold as a tactical play lately. Especially with the market volatility, being able to quickly buy/sell without worrying about storage, shipping, or premiums/discounts on physical could be a real advantage for shorter-term moves. While I'd never put my whole stack into it, a percentage might make sense for quick profit-taking or reallocation. Just a thought.