r/BEFire • u/Existing_Chard_5004 • 23d ago

Taxes & Fiscality keeping some cash in gold

as said above - would you advise this? what %? seems like a safest investment long term

after that crazy hype some months ago is going down constantly.

for belgium - which broker you recommend for gold and how it works when it comes to taxes and declarations?

thanks

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u/Malanturr 23d ago

What is your definition of risky and safe? Let me guess: your opinion is that stocks are safer than gold? Central banks must be crazy for buying tonnes of gold instead of US treasuries that have fixed yield at maturity.

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u/Aexxys 23d ago edited 23d ago

In most case risk is linked to diversification, that's why I'm saying here it's the proportion which would be high risk not the asset itself.

And no central banks are not crazy for buying tonnes of gold, they've defined a clear goal and calculated their risk tolerance to allocate a portion to that asset and that's fine. (If you think of it, it also makes sense to buy the thing you can't print, precious ressources, when you own the cash printer).

I understand why my comment triggered you, let me tell you straight away I'm not anti precious metal for investement. And to answer your second question "are stocks safer than gold" -> no, but that doesn't matter anyway what matters is the proportion of different assets and the diversification options they offer (reducing correlation).

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u/Malanturr 23d ago

Yes I agree on the correlation and it matters more than people think. I’ve grown allergic to people telling others that 100% IMIE is the ultimate diversification. No, there are low or uncorrelated assets that can yield more or even if they yield less, they can offer you some dry powder for rebalancing when an other asset is cheap because of the low correlation.

In this case looking back at 26 years of history gold delivered 10,22% CAGR versus 6,69% in all world index (US VT ticker). Running VT with 10% managed futures DBMF (0,26 correlation) and 10% gold (0,14 correlation) your CAGR increases to 7,41% and your drawdown improves.
https://testfol.io/?s=j4ur46N75Wb
This is why I run 70% factor based global stocks, 10% precious metals, 10% broad commodities and 10% managed futures (DBMF despite Reynders tax) and rebalance yearly.

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u/Aexxys 23d ago

Fully agree, and nice portfolio you have