How to balance Gold: iShares Physical Gold (SGLN)
Posted: March 6th, 2021, 1:19 pm
My original HYP, https://www.lemonfool.co.uk/viewtopic.php?t=17269, has now changed into a HYP with ITs, with a 79/21 split. I may sell more HYP shares and put them into the ITs as time goes by.
I notice a lot of successful long term portfolios tend to have Gold in them, for example:
Harry Browne's Permanent Portfolio (25% Gold) https://portfoliocharts.com/portfolio/permanent-portfolio/
Golden Butterfly (20% Gold) https://portfoliocharts.com/portfolio/golden-butterfly/
As a result I am considering adding iShares Physical Gold (SGLN), https://www.hl.co.uk/shares/shares-search-results/i/ishares-physical-metals-physical-gold-etc , to my portfolio. At the moment Gold appears to be at a 1 year low. I am undecided what percentage of the portfolio should be Gold, may be 5% to start.
I see that the price of Gold fluctuates a lot. My understanding is that the power of having Gold in a portfolio is within the regular re-balancing of it e.g. monthly, twice a year or annually. Just buying Gold and leaving in the portfolio is of limited benefit.
My uncertainty relates to balancing the Gold within the portfolio in the years after it has been bought.
When Gold is high: Do you sell some Gold and move the money into the other shares?
When Gold is low: Do you sell some shares and move the money into Gold?
The above 2 questions would return Gold to the agreed percentage of the portfolio.
TDM
I notice a lot of successful long term portfolios tend to have Gold in them, for example:
Harry Browne's Permanent Portfolio (25% Gold) https://portfoliocharts.com/portfolio/permanent-portfolio/
Golden Butterfly (20% Gold) https://portfoliocharts.com/portfolio/golden-butterfly/
As a result I am considering adding iShares Physical Gold (SGLN), https://www.hl.co.uk/shares/shares-search-results/i/ishares-physical-metals-physical-gold-etc , to my portfolio. At the moment Gold appears to be at a 1 year low. I am undecided what percentage of the portfolio should be Gold, may be 5% to start.
I see that the price of Gold fluctuates a lot. My understanding is that the power of having Gold in a portfolio is within the regular re-balancing of it e.g. monthly, twice a year or annually. Just buying Gold and leaving in the portfolio is of limited benefit.
My uncertainty relates to balancing the Gold within the portfolio in the years after it has been bought.
When Gold is high: Do you sell some Gold and move the money into the other shares?
When Gold is low: Do you sell some shares and move the money into Gold?
The above 2 questions would return Gold to the agreed percentage of the portfolio.
TDM