Things are going to change at a brisker pace going forward, so I will update our status annually rather than biannually as has been my habit until now.
The change in pace is due to the house my wife and I bought in October. It requires refurbishment, which means that we're in the process of moving some of our gold into real-estate.
We have in other words started a process of rebalancing.
The following changes have taken place in the markets since my previous assessments:
The Dow/Gold ratio has declined, which means that gold has outperformed the Dow:
- Jan 2017 = 16.4
- Jan 2019 = 18.2
- Jan 2021 = 16.2
- Jan 2023 = 18.8
- Jan 2025 = 16.3
- Jan 2026 = 10.0
The PSI20/Gold ratio is also down, continuing its quarter century decline. It's currently standing at an all time low of 70.
 |
Having rebalanced in October, we're now equally exposed to real-estate and gold:
- Jan 2017: 10 part real-estate, 20 part gold, 5 part cash - for a total of 35
- Jan 2019: 15 part real-estate, 20 part gold, 5 part cash - for a total of 40
- Jan 2021: 20 part real-estate, 30 part gold, 3 part cash - for a total of 53
- Jan 2023: 24 part real-estate, 33 part gold, 3 part cash - for a total of 60
- Jan 2025: 24 part real-estate, 40 part gold, 6 part cash - for a total of 70
- Jan 2026: 5 part real-estate, 5 part gold, 1 part cash - for a total of 11
Looking forward in time, we expect to see the following balance by this time next year:
- Jan 2027: 6 part real-estate, 5 part gold, 1 part cash - for a total of 12
The projected numbers are based on an assumption of higher real-estate and gold prices. But our shift from gold to real-estate will benefit our real-estate holdings at the expense of our gold holding.
 |
| British gold sovereign |
No comments:
Post a Comment