Rebalancing - thinking about taking some gold off the table but feeling conflicted

Richard Garcia

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Rebalancing - thinking about taking some gold off the table but feeling conflicted

richard_garcia👑Elite (1m-5m)

about 11 hours ago

Key Takeaways

•Okay, so I’ve been holding a substantial amount of physical gold in my IRA for, well, going on 15 years now.
•Now, my portfolio is sitting pretty comfortably in the $4M range, and gold has really done its job.
•Is anyone else in a similar boat, feeling the tug-of-war between sound portfolio management and the emotional attachment to gold as a safe haven?

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Okay, so I’ve been holding a substantial amount of physical gold in my IRA for, well, going on 15 years now. I started really getting into it right after the ’08 crash, when I saw a lot of my old energy sector colleagues in Houston get burned holding onto too much paper. My approach back then was to move a good 20-25% of my portfolio into gold, specifically American Gold Eagles and some Canadian Maples, which felt like a solid hedge against inflation and market volatility.

Now, my portfolio is sitting pretty comfortably in the $4M range, and gold has really done its job. With the recent run-up, my gold allocation is probably closer to 30-35% of my total holdings, maybe even pushing 40% if I’m honest with myself about some of the lesser-liquid assets. Part of me is screaming to take some profits off the table and rebalance back down to a more traditional 10-15%, maybe diversify into some income-generating REITs or even some dividend aristocrats. The other part of me, the one that saw what happened in '08 and '20 and even with the bank scares last year, is saying "don't mess with a good thing, stick with your guns."

I’m retired now, living comfortably here in Houston, and not really needing the cash for living expenses, but it feels a bit irresponsible to let one asset class grow this disproportionately, even if that asset class is gold. My financial advisor (who I generally trust) has been pretty hands-off with my gold allocation since I was so firm on it initially, but even he’s gently suggesting it might be time to trim some. Honestly, the thought of selling any of my physical gold feels almost impossible after holding it for so long – it’s been such a bedrock throughout market turbulences. Is anyone else in a similar boat, feeling the tug-of-war between sound portfolio management and the emotional attachment to gold as a safe haven? How do you decide when "enough is enough" with a protective asset?

5 comments

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Best Answer▲ 8 upvotes

steven_mitchell🏆Advanced (250-500k)

Totally get the conflict here. It's tough to mess with something that's been working for so long. If you're seriously considering rebalancing, you might want to look into the "dollar-cost averaging out" strategy. Instead of a lump sum, you sell off a small percentage over several months or even a year. It can help smooth out any market fluctuations and ease the psychological hurdle of divesting a large chunk. You can find some good articles on it with a quick search!

Comments (5)

david_brown💎Premium (500k-1m)Real Investor•less than a minute ago

Totally get this feeling. Not with gold specifically, but I had a similar internal debate about a chunk of real estate I've held for ages. It's done incredibly well, but the market's looking... frothy. Part of you just wants to let that winner ride, but the other part is screaming "take some profits!" The '08 crash definitely left its mark on a lot of us, making these decisions even tougher.

helen_turner💰Established (100-250k)Real Investor•less than a minute ago

Interesting strategy, especially coming from the energy sector post-08. You mentioned taking some gold off the table. Are you thinking of converting it to cash, or rotating into another asset class within your IRA?

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

I hear you on the rebalancing, and it's definitely a smart move to periodically review. But 15 years is a long time, and if that gold has been doing its job as a hedge and wealth preserver, why mess with a good thing too much, especially with the current economic climate? Maybe consider just a *small* trim if you're really feeling the urge, rather than a significant rebalance. Diversification is key, but so is sticking with what works.

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

carol_carter💰Established (100-250k)Real Investor•less than a minute ago

Totally get this. I'm in a similar boat, though not quite as long as you. Started building up my gold position in 2010 after seeing my parents lose a chunk of their retirement in the tech bubble and then the housing market. It's done its job and then some for me too, but yeah, that thought of "should I take some off the table?" definitely creeps in. Good to know I'm not the only one wrestling with it!

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