Let's cut the B.S. and Break the Codes for once. Let's talk about failure before we talk about success. Let's discuss about all my investing mistakes before how to become a Successful Investor!
Not sure to understand, what do yo umean by Owning physical gold is not liquid?
May be a bland statement! But physical gold is always on the rise as far as I can remember! I never see it went down! Not comparing it against the stocks/bonds, but for the value for money, returns you get on it is amazing too. To give an example, One Sovereign of gold was 400+$ in 2018 and 600$ in 2020. I bought 20 Sovereign in 2018, gains for me is close to 35%
Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering. So the paper gold may not be something to look up but Physical one in my view is yes!
By owning physical gold, I mean buying gold from a coin expert/numismatist that will be sealed in order to preserver its quality/integrity, and will have the sole purpose to be kept for a hope that its valuation will rise.
The problem is if your gold wasn't sealed with a specific Part Number, you may not even be able to sell it back the value you expect it to be, because based on the coin expert "evaluation" if the coin is scratched for instance, or was tampered, etc., will lose its value!
What I mean by physical gold is not liquid is that you highly depend on the offer & demand. You may sometimes not be able to sell it around your vicinities because the numismatist does not want to buy it (Owning too much already?) and if he wants, he may increase his trading fees, or even provide you a lower value than what you see online on the official website...
Indeed, Gold is a tricky play and should not be more than 8% of your portfolio some say (Mr Dalio)... as a rule of thumb, it is usually negatively correlated to the 10 yrs US treasury bond and US dollar value. If the 10yrs US treasury bonds are below the targeted inflation by the FED or are approaching zero %, gold becomes more attractive as it potentially will have an equal or higher return. If the dollar weakens, it also makes the gold more attractive for a foreign investor buying it with US dollars. I am keeping an eye on these two factors while cautiously investing in paper gold.
Indeed, nothing avoids anyone to hold 5%-10% of his/her own portfolio in gold, but that should be it. Gold should not be used as the main investment to grow you portfolio, but should only be here to provide some sort of stability when the market is crashing. But personally, I strongly believe we are better off with bonds rather than gold !
Yes, depending on the investment style and economic context, it may or may not be always interesting to allocate some part of your portfolio in gold :)
Not sure to understand, what do yo umean by Owning physical gold is not liquid?
May be a bland statement! But physical gold is always on the rise as far as I can remember! I never see it went down! Not comparing it against the stocks/bonds, but for the value for money, returns you get on it is amazing too. To give an example, One Sovereign of gold was 400+$ in 2018 and 600$ in 2020. I bought 20 Sovereign in 2018, gains for me is close to 35%
Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering. So the paper gold may not be something to look up but Physical one in my view is yes!
By owning physical gold, I mean buying gold from a coin expert/numismatist that will be sealed in order to preserver its quality/integrity, and will have the sole purpose to be kept for a hope that its valuation will rise.
The problem is if your gold wasn't sealed with a specific Part Number, you may not even be able to sell it back the value you expect it to be, because based on the coin expert "evaluation" if the coin is scratched for instance, or was tampered, etc., will lose its value!
What I mean by physical gold is not liquid is that you highly depend on the offer & demand. You may sometimes not be able to sell it around your vicinities because the numismatist does not want to buy it (Owning too much already?) and if he wants, he may increase his trading fees, or even provide you a lower value than what you see online on the official website...
Indeed, Gold is a tricky play and should not be more than 8% of your portfolio some say (Mr Dalio)... as a rule of thumb, it is usually negatively correlated to the 10 yrs US treasury bond and US dollar value. If the 10yrs US treasury bonds are below the targeted inflation by the FED or are approaching zero %, gold becomes more attractive as it potentially will have an equal or higher return. If the dollar weakens, it also makes the gold more attractive for a foreign investor buying it with US dollars. I am keeping an eye on these two factors while cautiously investing in paper gold.
Indeed, nothing avoids anyone to hold 5%-10% of his/her own portfolio in gold, but that should be it. Gold should not be used as the main investment to grow you portfolio, but should only be here to provide some sort of stability when the market is crashing. But personally, I strongly believe we are better off with bonds rather than gold !
Yes, depending on the investment style and economic context, it may or may not be always interesting to allocate some part of your portfolio in gold :)