Rebalancing - more gold or hold steady?
- •Currently, my physical gold holdings via a Gold IRA, plus some direct purchases, make up around 15% of my total portfolio.
- •My original target allocation was actually 10-12%, set back when I retired from offshore platforms about seven years ago.
- •I’m thinking of rebalancing not just back to my target, but maybe pushing it up to 18-20%.
Alright, so I’m looking at my portfolio numbers for Q1, and honestly, the gold side of things has been doing exactly what I’d hoped – providing a really solid anchor in what feels like increasingly choppy waters. Currently, my physical gold holdings via a Gold IRA, plus some direct purchases, make up around 15% of my total portfolio. My original target allocation was actually 10-12%, set back when I retired from offshore platforms about seven years ago.
The thing is, with inflation still stubbornly high, and frankly, the market feeling a bit… frothy, I’m wondering if I should lean further into gold. I’m thinking of rebalancing not just back to my target, but maybe pushing it up to 18-20%. I’ve got some capital gains from other investments that I could roll into more precious metals pretty seamlessly. On one hand, diversifying into more gold feels like a no-brainer given the current economic climate, especially with the dollar looking a bit shakey long-term. On the other hand, 20% feels like a pretty aggressive allocation for someone with a roughly $3 million portfolio, even for a guy who’s seen a few boom-bust cycles in the energy sector.
My wife is pretty conservative, and while she respects my investment choices (especially after seeing how gold held up when everything else dipped), she's still a bit wary of having "too much" in one asset class, even a historically stable one like gold. She’s worried about liquidity if we needed to pull out a significant sum quickly for something unexpected, like a major repair on the Galveston bay house or heaven forbid, a medical emergency. I understand her concern, but my counter is that this isn't pocket change, it's a strategic long-term hold.
So, for those of you with significant gold allocations, especially in the 15%+ range, how are you thinking about rebalancing right now? Are you trimming your gold holdings back to target, or are you letting it ride (or even adding more) given the current economic outlook? What's your comfort level?