3J·

Gold ETCs and their diversification

I am considering whether it makes sense to hold several physically deposited gold ETCs under certain conditions. I would like to reduce the issuer risk through diversification.

I am very practical and lazy by nature, so I prefer ETCs and don't want to hold gold bars or coins. This also makes selling and rebalancing much easier. If there really is a global collapse, then gold coins will be the least of our problems.

In my opinion, a balanced portfolio should also include gold. Rather as a stabilizer and protection against inflation.

I currently hold 5% gold in my portfolio. I would like to increase this proportion to at least 10% in the future. I invest in $EWG2 (+0 %) . Because 10% in just one gold ETC would be too much for me in the future, I am considering transferring my savings plan to $SGBS (+0,3 %) transfer my savings plan to . It is also important to me that the gold is held in Europe (Germany or Switzerland for the ETCs mentioned above). If there is a total loss, then at least the money should stay in Europe :)

Do you think this step makes sense? Do you only rely on one gold ETC or do you also diversify? I look forward to your answers.

7 Commentaires

Olissipo@LX013

$IGLN is held in the UK and my personal choice, you could look into that

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Rosi@RealRose

https://youtu.be/NNJkKiWZx98?si=j3pD1ZLpb59kKOkX

Something to think about.

But $EWG2 is also part of the monthly savings plan.

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Epi@Epi

Perhaps it makes more sense to diversify across different storage locations instead of different ETCs? What good are 7 gold ETCs if they all access the same empty warehouse?
But you have to look deeper into the ETC prospectuses.

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TheHumbleOne@Humble_InvestingX

@Epi Are these assumptions or facts? Why would the two ETCs mentioned above have the same storage location? If so, please provide sources. Kind of very pessimistic for my taste.

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Epi@Epi

@Humble_InvestingX Why pessimistic? It just follows your logic of diversification of gold ETCs (which I personally think is nonsense, but that's not the point). Diversification within gold ETCs only makes sense if the storage locations are different. Why else would an ETC fall to 0 if not because the depository is empty?

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TheHumbleOne@Humble_InvestingX

@Epi Your statement would also sound much more logical to me if you could provide me with proof that the bearing positions are actually the same. If the ETCs mentioned above have different bearing positions, then that's great. Why do you think gold ETCs are garbage? Has there been a case in the past where a gold ETC has completely sunk? I know that gold ETCs are strictly regulated in Europe and that the gold cover is controlled.

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Epi@Epi

@Humble_InvestingX Why should I go to the trouble of finding the bearing positions for you? You want to diversify. I was just pointing out a crucial aspect that many people often overlook.

I don't think gold ETCs are garbage. But I do think it's nonsense to diversify between gold ETCs.

I don't know of a case where a gold ETC has fallen to 0, that doesn't mean anything. It could still happen, especially if the stocks are empty. That's never happened before. 🤷

Do you know of a single person who has ever requested and received physical delivery of a gold ETC? I only know stories that it didn't work out.

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