Gold (for diversification and balance)

sixpence.

 Hello hello. The large bulk of my fund investments are in a VLS 60. I'm looking to further diversify by a very small percent of my portfolio into gold. This is because, out side of bonds, gold seems to have the best long term inverse relationship to international equities.

•  Do you people have any favourite (index) gold or precious metal funds?
•  Can you think of any other assets which respond inversely to equities? Aside from owning a physical property. 

csgohan4

plenty of ETC's that cover gold, investment in gold would seem reasonable to diversify your investment, but how much is hard to say and personal choice

EdGasketTheSecond

GBSS for gold, PHSP for silver

Blue_Sky

This is worth reading for people thinking of adding gold to their portfolio.
https://www.advisorperspectives.com/commentaries/2020/07/29/the-role-of-gold-a-less-than-perfect-inflation-hedge

MaxiRobriguez

Blue_Sky said:

This is worth reading for people thinking of adding gold to their portfolio.
https://www.advisorperspectives.com/commentaries/2020/07/29/the-role-of-gold-a-less-than-perfect-inflation-hedge

Nice read, thanks. 

dunstonh

Do you think now is a good time to be buying gold?    Gold peaks during a financial crisis.   It then falls away during recovery.

RyanHello

I have been buying gold ETCs on a monthly basis for the past few years. Gained much more than any bank account in the UK. It's worth adding to your portfolio. Though at the moment, seems a bad time to start to invest into it. Wait a few months. 

DiggerUK

sixpence. said:........out side of bonds, gold seems to have the best long term inverse relationship to international equities........
..........Can you think of any other assets which respond inversely to equities? Aside from owning a physical property. 

I'm assuming your savings are long term investments that may include provision for your retirement. We have all our retirement savings in physical gold and have had no regrets, even before the recent price highs.

The "inverse relationship" you mention has merit, but it isn't quite as set in stone as many make out. It's more a rule than a law.
You ask of other assets that act in a similar manner outside of physical property, I would suggest physical gold, it doesn't attract VAT. If you buy UK legal tender it is also exempt from Income Tax and CGT.  Gold backed ETF's and ETC's can be put in tax wrapped products.

As to buying now? Yes, if you average in for the long term. Five years plus as a minimum, ten years and over as a very low risk option.
I have monitored the price of gold since it last reached all time highs in 2011. Calculated on a regular amount bought on a monthly basis since September that year until now, you would have paid an average £962 per ounce, today the price is £1500+. Before everything went Titanic, gold started the year at £1150+, so keep things in perspective..._

sixpence.

dunstonh said:

Do you think now is a good time to be buying gold?    Gold peaks during a financial crisis.   It then falls away during recovery.

NO WAY. This would be for the future. Now is an objectively bad time to be buying gold, but I am preparing to maybe make a purchase in the impending recession...

Sailtheworld

sixpence. said:

dunstonh said:

Do you think now is a good time to be buying gold?    Gold peaks during a financial crisis.   It then falls away during recovery.

NO WAY. This would be for the future. Now is an objectively bad time to be buying gold, but I am preparing to maybe make a purchase in the impending recession...

To be honest if you're able to correctly judge whether the market price of gold is wrong and know the timing of the next recession you probably don't need to overly worry about diversification.

sixpence.

Sailtheworld said:

sixpence. said:

dunstonh said:

Do you think now is a good time to be buying gold?    Gold peaks during a financial crisis.   It then falls away during recovery.

NO WAY. This would be for the future. Now is an objectively bad time to be buying gold, but I am preparing to maybe make a purchase in the impending recession...

To be honest if you're able to correctly judge whether the market price of gold is wrong and know the timing of the next recession you probably don't need to overly worry about diversification.

So I feel like you're being sarcastic? Hard to tell on a forum! Obviously no one cane "time" the next recession, but I live in London and business are literally closing everywhere, very few people have been on holiday this year or come here on holiday, the theatres and cinemas have been shut... I think it's pretty obvious one is coming!