Physical vs. "Paper" Gold - My Two Cents as a Midwesterner
- •Been seeing a lot of chatter lately about physical gold versus just holding gold ETFs or other "paper" gold.
- •My Gold IRA, which is sitting around $700k these days, is entirely in physical gold.
- •I started really getting into this probably 15 years ago, wanting something tangible, something I could literally hold.
Been seeing a lot of chatter lately about physical gold versus just holding gold ETFs or other "paper" gold. As someone who built a portfolio over decades working hard in the dairy industry here in Wisconsin, I gotta say, the whole "paper" gold concept always felt a little… thin.
My Gold IRA, which is sitting around $700k these days, is entirely in physical gold. I started really getting into this probably 15 years ago, wanting something tangible, something I could literally hold. The idea of owning a share in an ETF that might be backed by gold, or a futures contract that's just a promise, just didn't sit right with my Midwestern practicality. After seeing how things can go sideways with just a click of a button in the market, having those actual coins and bars gives me a peace of mind that a digital number never could. When folks talk about counterparty risk, that’s exactly what I'm thinking about. If SHTF, I believe those physical ounces will hold their value better than any paper claim on them.
Now, I get the arguments for paper gold – liquidity, no storage fees, easy to buy and sell. And sure, for day trading or quick speculative plays, maybe it makes sense. But for long-term wealth preservation, especially for a significant chunk of my retirement savings, I just can't shake the feeling that physical is the only true gold. I'm not looking to get rich quick; I'm looking to keep what I've worked for. Plus, there's just something satisfying about knowing it's there somewhere, secured and waiting. Am I being old-fashioned, or do others feel this way too? What are your experiences with paper gold in a big portfolio?