This figure significantly exceeded consensus forecasts, as economists had anticipated job gains of around 164,000.
Adam Button, a market analyst, pointed out that the unexpectedly strong employment report is driving the U.S. dollar higher, which is consequently weighing on gold prices.
Source – KITCO NEWS
Australia has not escaped the threat of increased tariffs on its exports to the U.S., but it does have one world-class industry which is reveling in commodity market confusion, gold.
Both Citi and RBC Capital Markets see the gold price continuing to rise while the Resources Department of the Australian Government is forecasting an increase in national output from 286 tons this year to 309 tons next year, cementing Australia’s position as the world’s third biggest gold producer after Russia and China.
Gold’s rise in U.S. dollars is magnified in Australia by the currency effect with an exchange current rate of US63 cents delivering an Australian gold price of A$4903/oz, a record which easily eclipses all earlier gold booms.
Source – Forbes
Chilean state miner Codelco, the world’s largest copper producer, is targeting production of 1.391 million metric tons of the red metal this year, according to an unpublished government decree approving its 2025 budget reviewed by Reuters.
In calculating its budget, Codelco forecast a copper price of $4.30 per pound and expects a cash cost of $1.98 per pound, the document showed.
Source – Reuters
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.
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.
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.”
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:
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.
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.
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:
Gold ETFs:
Mining Stocks:
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.
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.
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!
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.
Last updated: [Oct] 2024
“With a stronger dollar and Treasury yields, it’s hard for gold to continue to move higher,” said Bob Haberkorn, senior market strategist at RJO Futures.
“(Gold) bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30,” Jim Wyckoff, senior market analyst at Kitco Metals, said.
Source – Reuters
A Chilean startup backed by BHP Group has delivered its first copper cathodes from a demonstration plant at a mine site in northern Chile as the industry looks to squeeze out more metal from lower quality ore.
Ceibo and firms such as Jetti Resources LLC and Rio Tinto Group’s Nuton venture are looking to roll out catalysts for liberating copper from low-grade ore that miners previously saw as too expensive and difficult to process.
Source – Mining.com
Copper cathode – is high quality copper that is produced through the process of electrolysis.
Electrolysis – is an electric current that passes through a substance to have a chemical change.
Did you know that during the 2008 financial crisis, while the S&P 500 dropped by 38.5%, gold prices increased by 5.5%? This stark contrast highlights why more people are turning to precious metals IRAs to diversify their retirement portfolios. There’s never been a more critical time to consider this powerful retirement strategy.
Let me share something that might surprise you: many people don’t realize that they can hold physical gold, silver, platinum, and palladium in their retirement accounts! Whether you’re worried about inflation, market volatility, or simply want to diversify your retirement savings, a precious metals IRA could be your answer.
Holding precious metals is what I’m doing to put into an IRA for my future. There are more and more people, of all ages, that are thinking or doing this or are already doing this. It’s never to late and again in these uncertain times so it’s wise to start thinking ahead.
Let’s dive into everything you need to know about securing your retirement with this unique investment vehicle.
A precious metals IRA, also known as a gold IRA, is a specialized individual retirement account that allows you to hold physical precious metals as part of your retirement portfolio. I remember when I first learned about these accounts – I was honestly skeptical! But after seeing how they’ve helped protect peoples wealth during market downturns, I became a true believer.
Let me tell you about a mistake I realized when I started doing research about gold IRAs. I was looking to purchase some beautiful collectible gold coins for a future IRA, not realizing till later, that it wouldn’t qualify! The IRS has strict requirements about which metals can be included in your precious metals IRA.
Approved coins and bullion include:
The setup process is actually simpler than most people think! As I am learning it seems overwhelming but it’s actually quite straightforward when broken down.
Choose a Custodian
Fund Your Account
Select Your Metals
Here’s something that will surprise many of us – you can’t keep your IRA-held precious metals in your home safe! The IRS requires specific storage arrangements, and getting this wrong can result in painful tax consequences.
One aspect I have grown to like about precious metals IRAs is their tax advantages. Just like traditional IRAs, they offer powerful tax benefits that can help accelerate your wealth building.
Let’s talk money – because understanding the full cost structure is crucial for making an informed decision. I encourage everyone to look beyond just the obvious fees. *these may or may not be subject to change*
Through research, I’ve learned that successful precious metals IRA investing isn’t just about buying gold – it’s about strategic allocation and understanding your goals.
Securing your retirement with a precious metals IRA can be a smart move in today’s uncertain economic environment. Whether you’re looking to protect against inflation, diversify your portfolio, or simply add a tangible asset to your retirement savings, a precious metals IRA offers unique advantages worth considering.
Remember, the key to success is working with reputable custodians, understanding the rules and requirements, and maintaining a balanced approach to your overall retirement strategy.
Consider speaking with a financial advisor to determine if a precious metals IRA aligns with your retirement goals and risk tolerance. It never hurts to ask questions it will only benefit you.
Ready to take the next step? Start by researching IRS-approved custodians and comparing their services and fees.
Your future self might thank you for taking this important step toward securing your retirement!
