Portfolio Rebalance - When to take some off the gold?

Helen Turner

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🥇 Gold IRA

Portfolio Rebalance - When to take some off the gold?

helen_turner💰Established (100-250k)

about 2 months ago

Key Takeaways

•Bought a good bit of it back around 2020-2021 when things were looking a bit hairy.
•Felt right then, still mostly feels right now, especially with all the talk about interest rates and global instability.
•You know, you work hard on the farm building things up, you want to make sure it's secured.

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Alright, so I’ve been sitting on a pretty good chunk of physical gold in my IRA for the last few years, probably about 15-20% of my total portfolio, which is currently hovering around $200k. Bought a good bit of it back around 2020-2021 when things were looking a bit hairy. Felt right then, still mostly feels right now, especially with all the talk about interest rates and global instability. You know, you work hard on the farm building things up, you want to make sure it's secured.

My question is, at what point do you guys consider rebalancing out of gold if it's performed really well? I mean, my gold holdings have definitely outperformed some of my other investments lately, and it's getting close to 25% of my overall holdings. I'm not looking to dump it all or anything crazy – gold’s a bedrock asset for a reason, and living out here near Shelbyville, you appreciate things that last. But maintaining that 15-20% target allocation was always the plan. Do you wait for a dip, or do you take some profits off the table when it hits a certain percentage regardless of market conditions?

I’m thinking about using any proceeds to beef up some dividend stocks or maybe even a little more real estate exposure (beyond the farm, obviously). It feels a little contradictory taking out of gold when everyone’s still talking about inflation, but sticking to a plan was always important when I started this. Any of you folks in a similar boat, or have you already made adjustments? What’s your threshold?

250

4 comments

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Best Answer▲ 9 upvotes

charles_lewis💎Premium (500k-1m)

Interesting strategy holding that much gold in your IRA, especially given its performance lately. You mentioned you bought a "good bit of it back around 2020-2021." Are we talking about a specific type of gold, like coins or bars, or just whatever was available through your IRA provider at the time?

Comments (4)

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

Totally get where you're coming from. I was in a similar boat, had about 20% in gold in my IRA, bought some chunks in 2020 too. Last year, when everything else was looking a bit rough but gold was holding strong, I took a small percentage (maybe 3-4% of the total portfolio) off the top and funneled it into some undervalued tech stocks.

It's all about balancing that risk and reward, right? Always a tough call to time the market, but sometimes it just feels like the right move for your personal allocation.

charles_lewis💎Premium (500k-1m)Real Investor•about 2 months ago

ashley_baker💼Starter (0-50k)✓ Verified•about 2 months ago

Honestly, 15-20% sounds like a pretty solid allocation for gold, especially if you're looking at it as a long-term hedge. I get the urge to rebalance, but maybe think about *why* you bought it in the first place. Did those reasons completely disappear? It's easy to get caught up in the "take profits" mindset when something's done well, but sometimes holding onto that foundational protection is the smarter play long-term, even if it means missing out on some gains elsewhere for a bit.

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

Hey, totally get the feeling of wanting to optimize after a good run! When thinking about rebalancing, something often overlooked is how the type of gold you hold might impact your options. For instance, if you have collectible coins, their numismatic value can fluctuate independently of spot price, adding another layer to consider.

You might find this article on diversification within precious metals helpful, even if you're primarily in gold. It touches on different forms and their roles, which could spark some ideas for your rebalance: https://www.investopedia.com/articles/markets/101514/how-diversify-precious-metals.asp

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