How I Am Dealing With Gold Investment Moving Forward

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Back in March 2024, I wrote in a post that I bought an 1 oz gold bullion bar from BullionStar, and got a free 1 oz Canadian Silver Maple Leaf bullion coin.  I also decided to include gold in my investment portfolio for the long term, which meant that I will buy 1 oz of gold yearly starting from 2024.  My intention for doing this is because with all the Quantitative Easing in both the east and the west, fiat may be losing their value in the long run and that makes gold investment more appealing than before (sorry, I am too timid for crypto).  

Today, I am revisiting this topic as a record for myself, because year to date, the price of gold has continuously hit new all time high, and I probably need to do some logical thinking on what is going to be my next move.  To me, gold is more of a preservation tool rather than earnings tool, because I know that gold does not distribute any dividends, does not generate any earnings.  Its value is simply derived from demand and supply, and also the corresponding strength of the US Dollar.  So when I share my post in Seedly's Facebook Page back in March, I do not understand why I get "flamed".  The individual commented "All time high liao then start to put gold into portfolio? Lol.  Retail mindset always get burnt".  I do not understand why I get this comment as I was not showing off my gains from gold or anything, and in the first place, I just bought 1 oz of bullion gold at that time, which is not a meaningful amount in the grand scheme of things.  Furthermore, my intention at that time was to buy 1 oz of bullion gold every year, and keep it as a form of hedge in the long term (original intention is probably around 20 years).  

Fast-forward to today, gold price has reached another all time high.  As of 1st October 2024, the price of gold is around SGD 3388.50 per ounce, which is about 22% higher than my purchase price back in February!  And as of 10th October 2024, it is at another high of SGD 3,419.50 per ounce!  So to the commenter, I suppose I get the last laugh (just kidding).

The purpose of this post is not to get back at the individual who posted this comment.  I am not offended or anything, because short term profiting from gold was not my original intent.  So whether it jumps 20% or drops 20%, I am not going to sell it.  The intention of this post is to serve as a record to tell myself what I think I should do moving forward.  As mentioned, my original intent is to buy 1 oz of gold yearly, possibly for the next 20 years.  However from a logical standpoint, if the price propels to unbelievable levels, then probably I should pause, and direct the cash towards other income producing assets like growing my dividend portfolio.

As such, for my personal consideration and actions moving forward, I think at the start of next year, I will only proceed to buy another 1 oz of gold bar if the price of gold retreats to below SGD 3,300 per ounce.  If the price remains above SGD 3,300 per ounce, I will set aside this amount of cash in a high yield savings account and will only buy the gold when the price retreats.  If the price of gold continues to appreciate further into 2026, I will re-evaluate the circumstances at that point in time to see what I should do moving forward.  Barista FIRE, here I come...!

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