Spot gold was up 1.3% at $3,122.02 an ounce at 1129 GMT, after its biggest daily gain since October 2023 on Wednesday. U.S. gold futures were up 1.9% at $3,137.80.
“We’re just living in a world of extreme uncertainty. We just don’t really know which way this trade war is going to go … I think for the course of this year, gold will march higher,” said Nitesh Shah, commodities strategist at WisdomTree.
Spot silver fell 0.6% to $30.85 an ounce, platinum lost 0.4% to $933.55, and palladium was down 1.7% at $915.68.
The most active futures on gold are currently trading at $2745.10, up $27.30 or 1% from a day earlier. That level is just about 2% shy of its all-time settlement high of $2800.80 marked on Oct. 30. If the contract closes at current levels, it would be the highest close since last month, according to the Dow Jones Market Data.
“Gold remains the consummate hedge for investors worried about inflation or growth,” wrote Jared Woodard and the team from BofA securities on Tuesday. Gold was labeled as BofA’s “highest conviction investment ideas for 2025.”
BofA securities – Bank of America Inc., previously Bank of America Merrill Lynch (BAML) is an American multinational investment banking division under the auspices of Bank of America.
Augusta Gold Corp. (TSX: G) (OTCQB: AUGG) (“Augusta Gold” or the “Company”) is pleased to announce that it has entered into a definitive merger agreement (the “Agreement”) with AngloGold Ashanti plc (“AngloGold Ashanti”) and certain of its affiliates, pursuant to which AngloGold Ashanti will acquire all of the Company’s issued and outstanding shares of common stock at a price of C$1.70 per share of common stock (the “Price”) in cash (the “Transaction”).
Richard Warke, Executive Chairman of Augusta Gold, commented, “The offer from AngloGold Ashanti represents a compelling offer to stockholders, locking in a meaningful premium and immediate liquidity as compared to waiting for the Reward Project to commence construction and then produce by mid-2027. Constructing the Reward Project would require additional dilution to raise the required equity, substantial time for construction, and time to get the mine operating at capacity. Taking the foregoing factors into consideration, I believe that the offer from AngloGold Ashanti represents a clearly superior path forward for stockholders.”
According to a recent Wells Fargo study, 71% of retirees worry they won’t have enough savings to last through retirement. That’s shocking! I remember back in 2008, I was just out of high school and remembered that you have to eventually have to have some sort of retirement but at that time so many people were going through a financial crisis and globally!
That was the wake-up call then that I should have started my gold journey, but I just ended up working hard and years later I finally got serious about research and understanding retirement portfolios with precious metals. So, then I was led to seriously researching gold allocation in retirement planning.
Understanding the Role of Gold in Retirement Planning
Let me tell you something that might surprise you – gold isn’t just another investment. It’s like having insurance for your retirement savings! Throughout my research, I’ve seen gold perform incredibly well during times when other investments were struggling.
Back in 2020, while stocks were on a roller coaster ride, gold hit an all-time high of over $2,000 per ounce. That’s exactly why we include it in retirement portfolios – it tends to zig when other investments zag.
Think of it this way: gold is like that friend who shows up strongest when times are tough. During the 2008 financial crisis, while the S&P 500 dropped by 37%, gold actually gained 5.5%. Pretty impressive, right?
But here’s the thing – gold isn’t just about protecting against market crashes. It’s really about preserving your purchasing power over the long haul. Once upon a time ago, you could buy a nice suit for $200. Today? Well, let’s just say inflation has been busy! Gold helps protect against that erosion of your dollars’ value.
Traditional Expert Recommendations for Gold Allocation
You’ve probably heard the old rule of thumb about keeping 5-10% of your portfolio in gold. But let me share something I’ve learned – there’s no one-size-fits-all approach!
The classic 5-10% rule came from studies showing this range provided the best balance of risk and reward over long periods. But here’s what most “advisors” won’t tell you: this percentage should shift based on your age and circumstances.
For instance, I found that people who are 10+ years from retirement stick closer to 5%, while those near or in retirement might want to consider up to 15%. Why? Because when you’re younger, you have more time to recover from market downturns. But when you’re retired, you need that extra protection!
While it seemed like a good idea to put 30%of gold in your portfolio or more, it may actually limit your overall returns in the following years. Balance is key!
Here’s a quote from James Rickards in his book The New Case for Gold 2016, talking about Gold in a well balanced portfolio.
“If you have 10 percent of your portfolio in gold and it goes down 20 percent, you’ve lost only 2 percent on your portfolio. That’s hardly a wipeout. Still, if it goes up 500 percent, which I expect, then you’ll do quite well on that 10 percent allocation. That’s a 50 percent gain on your portfolio from one investment. I recommend the 10 percent allocation because of the asymmetry in the potential upside versus the potential downside. With these simple rules as a guide-buy physical gold, avoid leverage, and keep your allocation to 10 percent-you’re ready to weather the storm.”
Factors That Influence Your Personal Gold Allocation
There are a number of factors that come into play when working on your gold allocation and things to consider:
Your job stability and industry (some careers are more recession-proof than others) Your other investments (real estate, business ownership, etc.) Your retirement timeline (longer horizons can handle more risk) Your monthly expenses and income needs
People typically fall into three categories:
Conservative: Might want 15-20% in gold
Moderate: Usually comfortable with 10-15%
Aggressive: Often stick to 5-10%
But here’s the crucial part – these numbers should shift based on economic conditions and your personal situation. During times of high inflation or economic uncertainty, you might want to lean toward the higher end of your comfort range.
Warning Signs You May Need More Gold in Your Portfolio
Here are the red flags to watch out for:
Inflation consistently running above 4% (like we’ve seen recently) Major stock market indexes showing high volatility Global conflicts affecting trade relations Central banks implementing unusual monetary policies
Something that has happened throughout the years is when you start seeing regular headlines about economic uncertainty, it’s usually a bit late to make major portfolio changes. That’s why you should keep maintaining a baseline gold allocation and adjusting gradually.
Different Methods to Add Gold to Your Retirement Portfolio
Through trial and error (and yes, some mistakes along the way), there’s more than one way to add gold to your retirement portfolio. Let me break down the main options:
Physical Gold IRA:
Pros: Direct ownership, tangible asset
Cons: Storage fees, insurance needs
Best for: People who want direct control
Gold ETFs:
Pros: High liquidity, lower fees
Cons: No physical possession
Best for: Those wanting easy trading
Mining Stocks:
Pros: Potential for higher returns
Cons: More volatile than physical gold
Best for: Risk-tolerant investors
I think a mix of physical gold through an IRA and some mining stocks for growth potential. But remember – mining stocks aren’t the same as owning gold itself! Having physical control of your gold is direct ownership that will prove useful in the long run.
How to Rebalance Your Gold Allocation Over Time
One of the biggest mistakes many people make is the “set it and forget it” approach. Your gold allocation isn’t a crockpot dinner – it needs regular attention!
Make a reminder in reviewing your allocation quarterly, but only making major adjustments annually unless there’s a significant market event. Here’s a basic framework:
Check gold prices against other assets Review economic indicators Assess your personal situation changes Make gradual adjustments (no more than 2-3% at a time)
Don’t panic when your gold prices drop and sell the whole lot out of fear and later regret it years down the road. The lesson here is to make small, deliberate adjustments rather than dramatic changes.
Common Mistakes to Avoid with Gold Allocation
Let me share some hard-learned lessons about what not to do with your gold allocation:
Don’t chase performance! Too many people load up on gold after prices spike Avoid investing based on fear or news headlines Don’t forget about storage and insurance costs for physical gold Never buy from unverified dealers (I’ve heard some horror stories!)
The biggest mistake? Thinking of gold as a get-rich-quick investment rather than a portfolio stabilizer. It’s wealth insurance, not a lottery ticket!
Conclusion
I’ve learned that the right gold allocation is as unique as your fingerprint. While the traditional 5-15% range is a good starting point, your perfect percentage depends on your age, risk tolerance, and economic conditions.
Remember, gold isn’t about getting rich quick – it’s about protecting what you’ve already built. Start with a modest allocation and adjust based on your circumstances and comfort level. And please, don’t make changes without careful consideration!
Take some time this week to review your retirement portfolio. Are you adequately protected against economic uncertainty? If you’re unsure, consider consulting with a financial advisor who has experience with precious metals allocation. It doesn’t hurt to ask questions in fact it’s a benefit!
Your retirement security is too important to leave to chance. Whether you choose physical gold, ETFs, or a mix of both, make sure your portfolio has the protection it needs for whatever economic conditions lie ahead.
IMPORTANT DISCLOSURE
This article is for informational and educational purposes only. I am not a financial advisor, investment advisor, or registered broker. The content provided here reflects personal research and opinion and should not be considered professional financial advice.
Any investment decisions you make should be based on your own research or consultation with a qualified financial professional who can review your personal situation, goals, and risk tolerance. Investment in precious metals, including gold, carries risk and past performance does not guarantee future results.
Examples, statistics, and scenarios mentioned in this article are for illustration purposes only. Your actual investment needs and suitable portfolio allocations may differ significantly based on your individual circumstances.
Always conduct thorough due diligence and consult with licensed financial, investment, tax, and legal professionals before making any investment decisions. This is especially important for retirement planning and precious metals investments.
By reading this article, you acknowledge that any actions you take based on this information are at your own risk.
Gold prices fell sharply by Rs 1,000 to Rs 98,400 per 10 grams in the national capital on Monday, amid a weak global trend and optimism surrounding a possible US-China trade agreement, according to media reports citing the All India Sarafa Association.
“Gold prices continued to decline as easing US-China trade tensions boosted investors’ risk appetite, reducing demand for safe-haven assets like bullion while a stronger dollar added downward pressure,” said Chintan Mehta, Chief Executive Officer of Abans Financial Services, as quoted in media reports.
“Rising geopolitical tensions could limit gold’s downside. As war risks escalate and new conflicts emerge, investors are likely to seek refuge in gold.”
London Metal Exchange (LME) three-month copper slumped to a 17-month low of $8,105 per metric ton on April 7 after China responded to U.S. tariffs in kind.
Citi, which now expects copper to hit $8,000 per ton over the next three months, warns that commodity markets are still not pricing the full potential impact on demand.
Copper as a macro play cannot but reflect the broader market concerns about the negative impact of an escalating trade war between the United States and China on the world economy.
But at a micro level, the specific threat of U.S. tariffs on the metal is pulling normal trade patterns out of shape and causing both LME and Shanghai exchange inventories to fall.
The R.M.S. Republic sank Jan. 24, 1909, after a collision in dense fog with the S.S. Florida off the coast of Nantucket Island, Massachusetts.
The Lords of Fortune company has identified two cargoes — a $25 million Tsarist gold shipment and an $800,000 U.S. Navy shipment, both 1909 face values when gold was $20.67 per ounce.
With a successful recovery, an $8 million investment should return $200 million conservatively, according to Capt. Martin Bayerle of Lords of Fortune LLC.
Add the Russian gold, 45 tons of United States gold $10 eagles on melt value alone, and you exceed 100 times, he said.
This is amazing! Wondering if there’s as much as they say there is. Hopefully there isn’t too much damage to the gold from the salt water. Can’t wait to see pictures or video of the excavation. -V.
