To my great regret gold has only come to my attention when it reached US$750 last October. Since then I have jumped on the boat and started gradually building up position in gold, until now I have 10% of my investment portfolio allocated into Gold (physical/unallocated Perth Mint certificate). And I plan to add more.
I am interested to know whether :
1. other people in this forum have gold in their investment portfolio and
2. if yes what percentage ? Whether you plan to increase your gold holding ?
3. if no, why you are not interested in gold ?
When I started buying gold last November, friends, relatives, Financial Planner, accountant are mostly sceptical and indifference at best. Now, the reactions seem to be improving, people start taking notice and asking questions on how, why to invest, whether it's too late to buy gold etc etc.
I am sure many people in this forum know the gold bull run, but knowing and taking action is different thing.
BTW, I did a bit of research on Gold vs All Ord performance over the last 3, 5, 10 years. The start and end of period obviously can make quite a different.
Investing in an indexed-ASX shares give you steady dividend of about 3-4% pa vs Gold with zilt/nothing.
However with shares you have to pay CGT when you sell them vs Gold with no CGT.
Gold VS All Ord
Mar 98-Mar08, 220% vs 202%
Mar 00-Mar08, 220% vs 177%
Mar 03-Mar08, 182% vs 193%
Mar 05-Mar08, 182% vs 136%
Mar 07-Mar08, 123% vs -7%
Below a historical chart of Gold in AUS$ from 1983.