Gold has always been a good hedge.
I’m a firm believer in a balanced portfolio and sometimes that means your hedges should be bigger (and sometimes smaller).
I think the mistake a lot of people make with gold is viewing it as a growth asset - yes, sometimes it *can* look that way, but that never works out in the long-term.
For the record? I’m bit deeper into gold now - and it’s always fun when a downside hedge actually performs well.
I do think we have some market valuation problems - despite being an AI believer, there’s absolutely a bubble and it’s gonna pop at some point. Bubbles always do.
If I knew the proper ratios? Well, I’d be sitting on my own island, sipping a cocktail.
I’ve been trickling some profits and upping my hedge - +5% or so... but, I never go all-in against capitalism.
The 87 Black Monday... dot com bubble... 2008 GFC bust.... Been through enough to know — a bad time is *always* coming.
What I’ve learned is to hold value, rotate out to hedges when you think the bubble pop is coming, but only the fool thinks it’s ever *OVER*. You ride out the inevitable crash and the inevitable bear and retain value.
Great post.
Thank you.
Well said
Gold as a place to store money. The thing is so many in our society have a lot of debt in their portfolio and little in the way of assets. I think if we have 15% of our investment portfolio in cash then some of that should be in metals. I don’t personally view gold and silver bullion as investments more like a savings account. If you have no debt and are investing a decent amount monthly and still have money to put to work then I see nothing wrong with putting that money into metals. Just have to get used to seeing the prices jump all over. Same as the stock market.