Rebalancing - should I diversify OUT of gold right now?

Paul Hill

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Rebalancing - should I diversify OUT of gold right now?

paul_hill🏆Advanced (250-500k)

about 1 hour ago

Key Takeaways

•Okay, so I'm wrestling with a portfolio rebalance and genuinely looking for some diverse opinions here.
•I've got a decent chunk, around $300k, currently sitting in my Gold IRA.
•Been building it up for the last few years, especially since late 2020 when I really started getting serious about inflation and market volatility.

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Okay, so I'm wrestling with a portfolio rebalance and genuinely looking for some diverse opinions here. I've got a decent chunk, around $300k, currently sitting in my Gold IRA. Been building it up for the last few years, especially since late 2020 when I really started getting serious about inflation and market volatility. My advisor here in Salt Lake City has been great, really helped me understand the mechanics of physical precious metals IRA and honestly, it’s done really well for me. I initially bought in at what feels like steal prices now.

The thing is, I'm looking at the recent run-up in gold prices and starting to feel that itch to diversify out of it a little. Don't get me wrong, I still believe in gold as a long-term hedge, but it's gotten to a point where it's a significant portion of my overall portfolio. I'm thinking about taking some profits off the table and perhaps moving some of that into other assets – maybe some stable dividend stocks or even looking at some international diversification. The thought of selling some of it isn't easy though, especially with all the talk about potential future economic instability. My advisor suggested holding steady for now, but also acknowledged that it's a personal call.

I know a lot of people here are heavy into precious metals, and for good reason! But for those of you who've been in this game longer, have you ever felt this pull to rebalance out of gold after a big run? How did you approach it? Did you regret it, or was it a smart move in hindsight? I've been using that Tax Calculator tool to help me visualize the implications of taking distributions down the line, which has been super helpful, but that's more for when I retire. Right now, it's about the allocation within my active investments.

Any thoughts on percentage points? Like, if gold is 25% of your portfolio and it surges to 40%, do you trim it back to 25%? Or do you just let it ride, assuming the trend continues? What's your personal 'red flag' for when it's time to take some profits on your gold holdings? It's a tricky balance between securing gains and staying protected against future uncertainty.

5 comments

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Best Answer▲ 10 upvotes

david_brown💎Premium (500k-1m)

Totally get where you're coming from on this. I've been having similar thoughts with my own Gold IRA. Started building it up around the same time you did, late 2020, for pretty much the exact same inflation concerns. It's done well, and now I'm sitting on about $250k in gold, wondering if it's prudent to peel some of that off and diversify into other areas. Definitely a tricky one to navigate!

Comments (5)

ashley_baker💼Starter (0-50k)✓ Verified•less than a minute ago

Yo, I totally get where you're coming from. I had a similar internal debate last year. My Gold IRA was looking *really* good, and I was tempted to skim some off the top and diversify into some other assets that felt like they were lagging.

Ended up holding strong, and honestly, no regrets so far, but it's a constant mental battle, right? Good luck with your decision!

joshua_phillips🏆Advanced (250-500k)Real Investor✓ Verified•less than a minute ago

Hey, that's a good chunk of change to be thinking about! Given you started building in late 2020 and were serious about inflation, can I ask what your original goals were for holding gold in this IRA? Was it purely inflationary hedge or something else too?

michael_anderson🏆Advanced (250-500k)Real Investor•less than a minute ago

Hey, I hear you on wanting to rebalance and diversify, especially with a chunk like that. But honestly, pulling out of gold *now* might be a bit premature. With all the global instability and central banks still printing money like it's going out of style, gold often acts as a pretty solid hedge.

Think about it, what's truly changed fundamentally to make gold less attractive as a store of value? If anything, the geopolitical landscape screams "own more gold." Just something to consider before you make any big moves.

gary_stewart📊Growing (50-100k)•less than a minute ago

Hey, that's a classic rebalancing dilemma! It's always tough when an asset has performed well. While you're weighing your options, you might find this article on diversification vs. concentration in a retirement portfolio helpful:

https://www.investopedia.com/articles/investing/090616/diversification-vs-concentration-which-right-you.asp

It doesn't specifically talk about gold, but the principles of maintaining your target asset allocation could definitely apply here. Good luck with the decision!