Gold, are anybody holding some gold to diversify their portfolio


(Kim Ditlefsen) #1

I have heard from multiple different sources (Ray Dalio, Rich dad poor dad, and some others) that having some gold in your portfolio is really smart. What do people here think about that? And anybody looked into the ETF from iShare called “Physical Gold” (SGLN) on the Freetrade platform? I’ am only looking into having a 7.5% asset allocation for this, based on the advice from Ray Dalio all weather portfolio.


(Emma) #2

Yeah I’m looking at Physical Gold as well. Loads of advice to buy gold in uncertain times so I think a tracker might be worth a go.


#3

Waiting for Freetrade to onboard the gold etf in their list then I will be looking at that.


(Kim Ditlefsen) #4

@stephen Freetrade already have the IShare ETF/ETC called Physical Gold that I was talking about.


#5

Woo-hoo!! I’ve been waiting for that and then I missed it’s release, do’h!

Just queued an order :slightly_smiling_face:

If I remember correctly I think you need 50 shares in that etf to equate to 1 Troy ounce.


(Kim Ditlefsen) #6

@stephen since you have been waithing for the Gold ETC (SGLN) have you had a look around and found that this is a good ETC for gold? As far as I understand this one seems to actually store gold and is not just a proxy for the gold price, is that what your research has found as well? And the final question is the 0.25% fee competitive?


#7

Hi, yes that is also my finding. I wanted to hold actual gold and not some derivative or proxy as you mention.

To my knowledge this etc is actual physical gold stored in a London vault by JP Morgan (I think) on behalf of iShares.

They have a gold bar list, so for me that’s proof it is physical (6500-ish bars last time I checked)

Is it competitive? I think so, I used to hold gold with royal mint and I believe they charged me 0.5%


(Kim Ditlefsen) #8

Thanks @stephen for the information, just got my order in as well.


#9

What percentage of your portfolio are you planning to gold-up? I think I might do 5% see how that goes for a while and adjust if needed


#10

Personally no. I’m only interested in income producing assets (ie primarily US shares which pay and increase dividends). I think Warren Buffet used the analogy of a farm. Over the years the amount someone is willing to pay to buy it from you (the share price) will fluctuate as the market moves. Despite that, if the farm (company) is well run it will pay you money which will increase and compound year on year without ever having to sell the farm until you want to. Its performance also gives it intrinsic value which supports its price increases.

With gold, however, you just have a lump of gold. While a company pays dividends and increases its intrinsic value, a lump of gold just sits there doing nothing for you until you decide to sell, meaning you’re entirely at the mercy of the price.


(Kim Ditlefsen) #11

@stephen I am planning to gold-up to 7.5% I think, but need to do some more research before I’m sure. Today I just took it up to 3.3% and I’ll update this in a couple of weeks when I have come to some conclusion about this. (This is my midterm(10years) portfolio)

@Baggyb I do definitely see your point of this not being an income producing assets, but since this is my 10year investment plan portfolio I rather have some kind of instruments that will smoothen the ride for my portfolio. When it comes to my Pension fund I only have shares and bonds. Where the bonds part is less than 10%.

And the gold is not just passive since I will rebalance my portfolio once or twice a year plus when there been a big correction. So it will help me to buy more shares when the price of shares is low, and sell shares when the price is high without having to pump new money into the portfolio.


#12

Diversifying your portfolio is always a good idea. Especially as the total value grows.

Pretty much everyone and their granny is expecting a correction to arrive any time now. So moving into a mix of commodities wouldn’t be an awful plan - careful however not to move into something that is correlated with economic growth!


(Emma) #13

Love the fact it’s called ‘correction’ instead of ‘plunging into oblivion’. Sounds a lot more reassuring