Most investors are making a massive mistake right now.
Despite a massive run-up over the past several years in the price of gold, very few Americans own any significant amount of gold. In investment accounts, gold and gold securities ownership is still very close to zero.
According to Goldman Sachs, gold ETFs account for just 0.17% of American portfolios.
Institutional strategists and financial advisors now recommend a 5-15% gold allocation – but actual American retail investor ownership is less than ~3%.
Morgan Stanley CIO Michael Wilson recently recommended a 60/20/20 portfolio – of stocks, bonds and gold – replacing HALF of the typical 40% bond position with gold.
I know many gold investors, but even in my small world of goldbugs and enthusiasts, I don’t know very many who have a 20% allocation.
Do you?
My point: we are not even close to the point where gold is something the average investor is thinking about. The gold bull we’ve seen so far has been almost entirely fueled by central bank and institutional buying.
Main street investors are focused on AI and SpaceX. They’re basically ignoring the gold trend.
And I think it will unfortunately end in disaster for many of these investors. I mean: is Nvidia going to go up another 10X? Betting your retirement on the world’s most expensive tech stock does not typically tend to end well.
When the average retail investor starts talking about buying high quality royalty firms or gold exploration juniors… and allocations are above 5% – I think you and I will probably be selling our gold stocks for massive windfall gains.
But right now, that’s not the case. People are very distracted by everything except for gold. We can bolster our retirements and raise our allocations at a substantial discount.
I’ve put together a short video talking about why gold is so important for retirement accounts. I don’t think many people really get what’s going on, which is why I made this video.
If you wait until the general population is bullish, you will be paying a premium to own the world’s best gold stocks. This latest price softness is giving us a very fat pitch – and valuations we genuinely haven’t seen in years.
Don’t waste this opportunity.
Watch my video and learn why gold should be a bigger part of your retirement.
Have a great weekend – and Happy Father’s Day.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio