It may be time to ditch your gold ETF or pooled gold and convert to physical instead.
It has never been more important to own gold as part of a diversified portfolio. The form your gold investment takes is just as important as owning it in the first place. ETFs and pooled gold may not be functional in extreme markets and may themselves be subject to systemic risk events.
We are living in extraordinary times and key to any investment plan that can weather the coming global financial storm is simply liquidity.
Traditional market liquidity is drying up. Increasingly dark pools are hoovering up equity and FX volumes. Markets are becoming disjointed and prone to large wild swings. Central banks are entering the market on political mandates as opposed to a search for yield, algorithmic investors are untested in bear markets and likely unprepared. The table is set for significant disruption and systemic damage. Your gold investment may not be accessible nor liquid in times extremis.
When you buy gold as a systemic hedge you do so hoping that it will never be needed. You may even hope it falls in value, because if it is falling all your other productive assets are hopefully appreciating. This is the key, gold is valuable as a systemic hedge, if the system is working then gold should fall in value. If gold is rising then the system is not healthy and you need to take stock, literally.
At GoldCore we advocate a 5 - 10% allocation of gold into your portfolio. Your gold should be held in allocated, segregated and most importantly physical form, with serial numbers, in a non bank vault.
Our clients are able to take physical delivery of their gold whenever they wish, without entering into a transaction to sell. We believe that gold should have as little legal separation from our clients as possible.
If you would like to discuss opening up an account please feel free to contact me at your convenience.
Stephen Flood, CEO, GoldCore Limited
Email: [email protected]
Web: www.GoldCore.com
US +1 (302)635 1160
UK +44 (0)203 086 9200
Tax Consultant
8 年We offer physical in small weights (1g 2.5,&5g) lbma certified for retail saver.
Examining Gold Silver & Critical Metals & managing bespoke resources portfolios. Also dealing in precious metals
8 年Converting to physical has been a smart move for a few years now