1D·

I was expecting years of waiting for a gold correction, but now it's suddenly here and I'm unprepared 🥲

I have been waiting for months for a correction in gold in order to build up a long-term buy & hold position of 5-10% of my portfolio in precious metals.

However, I didn't expect the correction to come so quickly, but rather expected years of waiting and am now frankly a little unprepared. 😅

Accordingly, I still have a few unanswered questions and am unsure how to proceed strategically. 🦉

Among other things:

1 - Should I focus exclusively on gold or would it be better to diversify more broadly?

Would a combination of gold, silver and copper make sense and if so, in what ratio?

1b - Are there arguments for currently preferring silver or copper to gold?

2 - How would you classify the current setback: as a real opportunity or just the start of an even bigger correction?

I would be delighted to hear your views on this so that I can make a clear and sustainable long-term decision. Thanks ☺️ to all

3 🇦🇹 And another question for the Austrians: which paper gold and which paper silver make sense for tax purposes in Austria?

$EWG2 (-9.17%)

$SSLN (-23.2%)

$COPA (-5.46%)

18 Comments

Ayecaramba@Ayecaramba256

And gold is higher than at the beginning of the year. So what good has waiting for the last few months done you?)

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Kate🦋@Iwamoto

@Ayecaramba256 You confront me with reality so early in the morning before I've even had my coffee. It's like a slap in the face. Not nice. Maybe the precious metals will fall even lower? Maybe you're right? Who knows?

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Ayecaramba@Ayecaramba256

@Iwamoto Powell's successor was digested yesterday. Let's take a look. Anything can

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Stulle 🥪@Stullen-Portfolio

@Ayecaramba256
...or the opposite happens. 😉

Greetings
🥪

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Stulle 🥪@Stullen-Portfolio

@Iwamoto

Most important rule: coffee first! ✌️ 😁

Greeting
🥪

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DumpMoney@DumpMoney

2. interesting question. With equities, you can look at the share price increase against the EPS or EBIT increases and assess whether parabolic increases have a foundation (good examples: NVIDIA, Cisco). In the case of gold, it is probably ultimately pure market demand. The use of gold in the industry is likely to be rather limited I guess. But I'm no expert here.

When I look at gold, from the 1980 ATH to around 2006 flat,
from the 2011 ATH to approx. 2020 flat, the periods are not insignificant in terms of 0 return. If I had gold - which I don't - I would sell. No one has ever become poorer from profit-taking.

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John@Transporter

In my opinion, you only buy precious metals physically, never on paper. If it should really come to the point where you need the EM for hedging, then you can either wipe your ass with the paper or light a fire. Oh no, you can't even do that. It's just zeros and ones.

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TomTurboInvest@TomTurboInvest

Unfortunately, no paper is tax-privileged in Austria, only hard metal, i.e. coins or bars

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Kate🦋@Iwamoto

@TomTurboInvest and where is the best place to buy them? 😅

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TomTurboInvest@TomTurboInvest

@Iwamoto where they are cheapest 😉
Joking aside, as I don't have any relevant shares in my portfolio, I'm the wrong person to ask. But it could be Ögussa, Philoro or even the Austrian Mint

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mein_depot@seppl6431

Yes, unfortunately it is difficult in Austria. I would even buy silver from a private seller, as long as it is sealed, so you can save yourself some of the VAT.

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core_code@core_code

If Ögussa is the Austrian branch of Degussa, then that would be my (biased) recommendation.
In any case, I have had good experiences with Degussa in recent years.

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Max@Divident_e

My dear. You know how to do it. You just have to put it into practice

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John@Doe

I don't know whether only Epi should feel addressed or whether everyone is allowed to comment on this... So here's my breakdown. At the end of each year, I make sure that I have 20% of precious metals in the PF, 80% of which is gold 🥇 and 20% silver 🥈. Whether they are negative or positive doesn't really matter, because just like a Bitcoin is a Bitcoin, an ounce of gold is an ounce of gold. So no matter when you buy gold, it will usually always be the wrong time, if you buy it and don't convert it, the time of entry doesn't matter at all. For me, precious metals are only a hedge in the event of a fall. In the case of hedging, it should also be physical and not in paper form.

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Kate🦋@Iwamoto

@Doe You and a few others can always get in touch. Thanks for the insight.

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John@Doe

@Iwamoto you can look at https://www.goldavenue.com/de, which is in Switzerland, but they store your precious metals free of charge up to €10,000, after that there is a small surcharge and you can also have it sent directly to you.

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Stulle 🥪@Stullen-Portfolio

Well, gold is not a MUST.

There are (good) reasons why it makes sense in many asset allocations, yes. But it's still not a must.

You are ambivalent here. You have made the proportion of gold additionally dependent on other constraints and have not implemented your target allocation "unconditionally", but made it dependent on other conditions.

Nobody knows whether this was right or wrong. You shouldn't try to find out now.
It would be important to decide whether you are actually sticking to the previous, unrealized target allocation or whether you are setting a new one without gold.

Greetings
🥪

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Stulle 🥪@Stullen-Portfolio

@Iwamoto

But the bottom line is (once again):
Timing is a bitch. 🤷

In many classic asset allocations, the purpose of gold is to reduce volatility and thus give the portfolio a better risk/reward ratio.

If you say yes to the theory, you have to put it into practice. Timing this is another bias that must first be recognized as such in order to rule it out...

Greetings
🥪

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