Partial sale of gold to reach 5% weighting

7Mon

Is the sale of the gold ETF tax-free?

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7Mon

@thewolfofallstreetz In the case of the gold ETC, which also offers delivery in physical gold, it is tax-free after a holding period of one year. However, I don't know off the top of my head whether this is the case for me. I would have to wait until I receive the PDF and the tax rate from Trade Republic. But as I haven't yet used my tax-free allowance for this year, I'm assuming so.

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7Mon

@Carsten1970 Exactly. This is the case with Xetra-Gold, EUWAX Gold II and WisdomTree Core Physical Gold, for example. I'm not sure about yours, I'd have to look it up. Hence my question as to why you're not investing in the others.

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7Mon

@thewolfofallstreetz According to Trade Republic Sales PdF, no tax was levied and nothing was deducted from the tax-free amount.

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7Mon

@Carsten1970 It usually takes 1-2 days until the allowance is updated. Perhaps you would like to give another update afterwards?

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7Mon

@thewolfofallstreetz Of course I do

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@Carsten1970 https://www.wisdomtree.eu/-/media/eu-media-files/other-documents/faq/faq-sgbs---investing-in-gold_tax-benefits_de.pdf?sc_lang=de-de&hash=2BD4E93D7162B266D7529F6F80FC3F13

7Mon

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7Mon

@thewolfofallstreetz I have now checked this again. There are no tax deductions in the PDF and the tax-free amount has not changed.

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7Mon

What do you actually want with 5% gold? It does you next to nothing for the portfolio structure. You might as well leave it alone and collect some interest somewhere instead. 🤷

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7Mon

@Epi I don't think you get 10.8% YTD and 26.8% one year interest anywhere.

The Gold ETC has outperformed the MSCI by 30% over the last three years

It's just my setup.
If the weighting is no longer correct, I simply change it.

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7Mon

@Carsten1970 That's why I think 5% weighting is too low. According to backtests, a sensible minimum is 15% in 1973, the optimum is 30%.

So why reduce it to 5%?

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7Mon

@Epi Because I no longer trust the gold standard as long as it is not officially backed.
Therefore only gold 5% and BTC 5%

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7Mon

@Carsten1970 What gold standard? It's been history since 1973. 🤷

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7Mon

@Epi Exactly. And from what I've read, Mr. Orange wants to completely reassess this.

But that's okay. Let him do it.

I have my core with 5% gold, 5% BTC, 40% distributing, 45% accumulating.

And a bit of gamble with about 4%. If I get more than 7% with the gamble, it goes back into the ETF.
But I'm out of gold for now and am only increasing marginally

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7Mon

@Carsten1970 You can do that. But again: why gold only 5%? 🤷

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7Mon

@Epi Because that's what I came up with. According to what I've read, 5% in raw materials should be appropriate. Of course more is possible. Maybe I'll increase the proportion at some point.

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7Mon

@Carsten1970 Sure, but why did you come up with the 5%? After all, gold as an asset class is not a commodity and works in a completely different way (e.g. not dependent on the economic cycle). And in all backtests, 5% gold is simply irrelevant for the portfolio. You can test it yourself at Portfoliovisualizer.com.

I know that some "experts" occasionally recommend a 5% gold allocation, but I just don't understand it. The experts themselves rarely stick to their own advice anyway. So I hope you can explain it to me.

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7Mon

@Epi No, I can't explain it to you, I just read up on it and listened to some "experts". I'll leave it as it is and see how it develops. Maybe I'll increase the savings plan again at some point.

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