Blackrock gold fund and gold bubble profit taking?

cloud_dog

sabretoothtigger wrote: »

Rather then focus on when to take profits, its best to come up with which investment will you switch the money to.

Have to say I'm not fond of this approach, I believe to be out of the market is just as valuable as being in it. Having said that this depends on an awful lot of additional factors so staying in and/or switching to another fund is a useful appeoach.

But, as of now, I think taking a percentage / profits and holding cash is a reasonable course of action. (all IMHO of course)

Linton

sva19 wrote: »

I have been investing in the blackrock gold fund for a few years now, doing monthly contributions of £100 etc.

The fund has grown by around 50% for e.g £1000 to £1500.

Reading a lot about gold price bubble etc, so when profit taking how much should you generally take out and how much leave. I.e do you just take out just the the profit £500 or take it all out if you think the gold bubble will burst and stock falls say by 30%?

Do most people think gold fund and prices are riding far too high?

I dont think you can safely decide whether a price is too high - if you could, and other people were as clever as you, the price would already have dropped.

What I suggest is something along the lines of ... have two funds, one risky, and one safe ( 1 year fixed rate cash?). Then each year switch between the two funds sufficient to keep the value ratio the same.

In that way you will tend to take money from the risky fund when the price is high, and invest in the risky fund when the price is low - this seems a good thing to do! If the risky fund continues to do well over a period of years you will cream off some profit, but leave the rest to further increase your return.

Of course as you get more savings you can begin to diversify into other funds.