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Gold Again

Does 3-5% position in gold make any sense in the present investment environment? It is part of my 50% nonequity portion of my portfolio

74-year young investor


  • TedTed
    edited February 2018
    @Bobpa: 5% in CEF, 63% gold, 37% silver bullion.
    Sprott Website:
  • @Bobpa, I'm not a gold fan myself and I don't hold it in my self managed portfolio, but I will say that my Schwab robo-portfolio holds 5% IAU, a gold index etf. So be it. The robo portfolio is static, so the managers that set the algorithms that make these decisions on diversification believe in gold. In other words, they don't care about the "present" environment. They just think it's worth holding long term. So far the Intelligent Portfolio has done pretty well, so maybe they know what they're doing. FWIW.
  • I also have positions in the Schwab Intelligent Portfolios. Gold like bonds is not one of my favorite investment choices.
  • MikeM
    I am becoming more pleased that I chose to use the Schwab Intelligent Portfolios. I will likely move more assets into them. It certainly makes investing much simpler.
  • I agree @Bobpa. What I've learned over the years is that constant tinkering with your funds is a definite drag on total return. I like the stability of the robo, at least for a good chunk of my money. I still like to run my own 'chunk' too, just for the fun of it.

    Are you aware of the advisory service and automated withdrawal service attached to Intelligent portfolio? It offers more than just portfolio management I'm finding out. Going to a couple seminars to learn more in the next couple months.
  • @MikeM
    How did your robo portfolio react over recent drop in stocks compared to your other portfolio ?
    Thanks, Derf
  • Hi Derf, my robo has about 62-63% equities and it dropped -6.7% from high to low. As I look right now it is up +1.5% for the year FWIW. Comparing to the self managed isn't an accurate comparison. The self managed is only about 40-45% equities at this point. That drop was somewhere around -4.5% I believe. Not sure where it sits YTD but it is on the + side. Not as high a YTD return as the robo.
  • Howdy Bobpa,

    I think 3-5% of one's wealth is completely reasonable and have been preaching such around here for longer than I care to think.

    Ted mentioned CEF and that's probably the easiest way to cover this square. Unless it's a tax deferred or exempt acct, you want to avoid the bullion ETF's like the plague. Their gains are taxed as collectibles at 28%. CEF is not.

    There are also those that recommend that for one's bullion holdings you use the real thing. Not that hard, really. A roll of American Gold Eagles is about 2" tall by 1" square and can be hidden in the oatmeal box. At $1400 per oz., that's about 28K. Silver? Buy a 100 oz. bar and paint it black and use it as a door stop. Or start collecting some nice bling that's not designer label (i.e. plain vanilla gold jewelry bought by gram weight).

    just some thoughts,

    and so it goes,


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