Rebalancing dilemma with my gold coin stash - what's everyone else doing?
- •Okay, so I'm looking at my portfolio these days, and with the way things are going, I'm genuinely debating a significant rebalance.
- •I started getting serious about it back in '08 after seeing what happened, and it's served me incredibly well.
- •I’ve mostly got American Gold Eagles and Canadian Maples, with a few Kurgerrands I bought in the 80s when I was first getting into this.
Okay, so I'm looking at my portfolio these days, and with the way things are going, I'm genuinely debating a significant rebalance. I retired from the energy sector here in Houston a few years back, and a good chunk of my nest egg (that 1-5M range, mostly on the higher end of that now thankfully) is tied up in physical gold, especially coins. I started getting serious about it back in '08 after seeing what happened, and it's served me incredibly well. My initial gold allocation was probably around 15%, but with all the volatility lately and gold's solid performance, it's crept up to almost 30% of my total portfolio. I’ve mostly got American Gold Eagles and Canadian Maples, with a few Kurgerrands I bought in the 80s when I was first getting into this. They just sit in a secure vault, giving me a huge sense of security.
The logical part of my brain says, "Hey, that's a bit heavy, maybe trim some to re-allocate to dividend stocks or real estate." But then the other part, the one that remembers market crashes and inflation eating away at savings, screams to hold tight. I've been doing some serious soul-searching and crunching numbers. I found this "Gold vs Stocks Comparison" tool on Gold IRA Blueprint (specifically this one: https://goldvsstocks.goldirablueprint.com/?period=10Y) and when you look at the 10-year performance, gold has held its own remarkably well compared to the S&P 500, especially considering its role as a hedge. That just reinforces my gut feeling to keep a significant portion.
I guess what I'm grappling with is the psychological aspect of selling something that has been such a consistent protector of wealth. Anyone else feeling this tension? Did you end up selling some of your gold when its allocation got "too high"? Or did you just let it ride, seeing it as a strength rather than an imbalance? Part of me thinks, if it ain't broke, don't fix it, especially with all the talk about potential economic headwinds. Just curious about others' experiences and thought processes around this specifically with their gold holdings.