I sold my gold collection—Maple Leaf coins—the week before last. The coins were beautiful, no question about it. But I’ve come to the conclusion that gold in this form isn’t right for me. The effort required for secure storage, the lower long-term performance relative to other assets and strategies, and the limited flexibility (divisibility, transport, and ease of buying and selling) led me to this decision.
Sure, I’m giving up a diversification tool in my portfolio, but I’ve also been asking myself for a long time: why am I investing? Gold is certainly good for preserving wealth and purchasing power and for cushioning fluctuations in the overall portfolio.
But that’s not what I need. I need performance that consistently and significantly outperforms the broad stock market. To achieve that, I must also accept higher volatility in the overall portfolio—volatility that gold could certainly help dampen.
But lower volatility and market-average returns won’t get me where I want to go.
So what instead of gold?
For now, I’ll hold onto the cash until it’s clear what will happen with the $BTC (-0,22 %)
holding period. If it does indeed take effect by 2027 (which, as of now, can be optimistically doubted), all the cash will go into Bitcoin, provided that the grandfather clause for holdings purchased by December 31, 2026, is included in the law. The allocation to BTC would thus be very high, but no further purchases would be made after that. It’s essentially an investment in the tax advantage, in addition to the high price potential that I see anyway.
If the holding period remains in place for now, only a portion of the funds will go into Bitcoin, and the Wikifolios 3xGTAA, US Momentum Leaders, and Global Momentum Leaders from@Epi and @Krush82 will be topped up.
The strategic focus of my short-term liquid assets will then be on multi-asset and stock momentum, as well as a “buy and hold” approach to Bitcoin.
Only time will tell if this leads to success. But with this approach, I at least have a realistic chance of regularly outperforming the broader market and of no longer being dependent on gainful employment well before the standard retirement age, with the option of spending a significant portion of the year outside of Germany.
What I do know for sure, however, is that my goal cannot be achieved with the B&H World ETF. So I’m turning up the volatility even further and betting that it will swing upward more frequently and more sharply than it does downward.
