The Fed's rate hikes and my gold IRA - anyone else seeing this?

Paul Hill

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The Fed's rate hikes and my gold IRA - anyone else seeing this?

paul_hill🏆Advanced (250-500k)

about 7 hours ago

Key Takeaways

•Okay, so I've been watching the Fed like a hawk, especially with all the talk about potential rate cuts this year.
•My gold IRA has been a really solid performer for me, especially over the last couple of years.
•I actually advise some clients in the SLC area on their Precious Metals IRAs, and it's been a consistent topic of conversation lately.

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Okay, so I've been watching the Fed like a hawk, especially with all the talk about potential rate cuts this year. My gold IRA has been a really solid performer for me, especially over the last couple of years. I've got a decent chunk, about $350k of my portfolio, in physical gold through an IRA, and I've been really happy with how it's buffered some of the market volatility. I actually advise some clients in the SLC area on their Precious Metals IRAs, and it's been a consistent topic of conversation lately.

My thinking has always been that while rates are high, gold might see some headwinds since the dollar strengthens and yield-bearing assets look more attractive. But then you also have the inflation hedge aspect, which is a huge driver for me. I'm trying to balance that out. We’ve seen some decent gains in gold even with the Fed being pretty hawkish for a good stretch there. What's everyone's take on how the market is going to react once (if?) they start cutting rates? Does that signal a rocket for gold, or is it already priced in to some extent?

Another thing I've been pondering is the long-term play here. Beyond the immediate Fed actions, the underlying economic stability (or lack thereof) seems like a much bigger factor for gold's appeal. I've seen some of my clients get a bit antsy with the current market, but I've always preached diversification and the non-correlation of gold. Is anyone else feeling confident that gold will continue to act as that safe haven, regardless of how many 25-basis-point cuts the Fed dishes out, or are there other factors weighing heavier on your minds right now?

4 comments

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Best Answer▲ 8 upvotes

joyce_cooper📊Growing (50-100k)

Hey, totally feel you on watching the Fed like a hawk. It's a wild ride out there! Since you're looking at rate hikes and how they might impact your gold IRA, you might find some interesting insights over at Gold.org's Gold Investor Q4 2023 report. They often have good analysis on central bank policies and gold's performance. Could be a good resource to cross-reference with what you're seeing!

Comments (4)

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

Totally get what you're saying! I'm in a pretty similar boat. I've been eyeing my gold IRA performance too, especially with all the Fed noise. My portfolio isn't quite as hefty as yours, but I've definitely noticed the same trend of it being a really stable part of my investments when other things are, well, less stable. Makes you feel good about having it, right?

matthew_murphy👑Elite (1m-5m)Real Investor•less than a minute ago

Interesting! You mentioned your gold IRA has been a "solid performer." Are you measuring that specifically against inflation, or just general portfolio growth/returns in USD?

joyce_cooper📊Growing (50-100k)✓ Verified•less than a minute ago

Interesting post! While I definitely get the appeal of gold as a hedge, especially in uncertain times, I'm not entirely convinced that Fed rate hikes are always a negative for gold.

Historically, aggressive hikes can sometimes lead to market volatility and concerns about economic growth, which can actually drive investors towards safe havens like gold. It's not always a straightforward inverse relationship, and other factors like inflation expectations and geopolitical events often play a bigger role. Just something to consider beyond the immediate rate hike headlines!