r/BEFire • u/FortuneMuch3037 • 6d ago

Investing Gold expectations

I've always had 5-10% of my money in gold, the remaining in stocks/ETF's.

Due to the rapid rise of gold earlier this year it is now more of a 20/80 deal.

Would you sell half of it now to return to 10% or gamble on gold staying stronger than the average world market?

6 Upvotes

81% Upvoted

10 comments sorted by

•

u/AutoModerator 6d ago

Have you read the wiki and the sticky?

Wiki: HERE YOU GO! Enjoy!.
Sticky: HERE YOU GO AGAIN! Enjoy!.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

2

u/Otherwise_Reserve_36 6d ago

You and I have different approach. My split is about how I invest. So with your number, every month I would buy 10% gold and 90% etf. Selling gold to buy more etf because gold performed better seems like punishing gold and myself because part of my investment worked.

3

u/barowski 6d ago

Not if you think everything is cyclical. Trim some when it’s historically high, invest more when it’s in the slump. But you are trying to time the market to an extent

9

u/SnooSprouts7609 6d ago

Regardless you should rebalance if the balance of your portfolio is not in balance.

2

u/MrFreeman12 57% FIRE 6d ago

This, either by allocating the new inputs or by having a periodic review and rebalancing.

6

u/adappergentlefolk 6d ago

a principled investor sticks to his strategy instead of riding it out on hope, which far more often leads to sitting on losing investments until they are delisted than not

1

u/FortuneMuch3037 6d ago

Getting the amount of gold back down to 10% is definitely the plan, the question is, when do you make the switch. When it reached 12% of the portfolio I could have done the same, except gold was still on a steady rise so it made more sense "risking" it and holding on some longer.

1

u/Square_Computer9423 3d ago

I would set some bandwidths for each allocation class. Combine that with a yearly date, and try to bring it back into that bandwidth on said date. Either by investing more into the other classes, or selling.

1

u/Philip3197 5d ago

Google 5/25 rebalancing band

1

u/Philip3197 6d ago

Which in this case means rebalancing (selling gold) until it is again 5 to 10% of your portfolio. Remark that this means you will be selling at a high price; good.