In a recent discussion on the BizNews share portfolios, Alec Hogg addressed the topic of gold investment, comparing insights from experts Piet Viljoen and Peter Major.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
By David Melvill
*My question – gold related*
Alec, I enjoyed your interview with Magnus Hystek and Piet Viljoen’s on their share portfolio challenge – it was most insightful. Furthermore, I know you took Piet’s counsel on *“putting 2% into cryptos.”* The portfolio has grown from 2% to 6% allocation – it has been a really good call.
Piet remains very bullish on his *“hard assets” allocation,* uranium, oil and especially gold, in his portfolio.
Forgive me for pursuing this matter of *gold as some “good insurance.”* I know Warren Buffett has been disparaging towards gold, might you break with the allegiance to him (and his investing philosophy) and follow Piet with a *small allocation to gold?*
*Alec’s response*
Gold is not a Warren Buffett thing, it is a *Peter Major “thing.”* Peter pointed out, “When you buy Krugerrands (KR’s) you buy gold and the rand.” Alec said, “Krugerrands have a good proven track record.” He added, “I would prefer to buy the *Gold ETF* launched by ABSA on the JSE. “You get the same exposure to gold.”
Alec added, “There are some people that like to hold the assets, as you would with property.” “For me the Gold ETF would be my choice.”
*“Piet is a smart man.”* “He is of the persuasion that the *“inflation argument”* is going to continue, that the *US has too much debt* and therefore inflation will be around for longer.” “Therefore you need hard assets as they do well in this environment.”
*My comment*
Alec is a *brilliant journalist,* he has become a *smart manager of money.* Probably because he is so well read and does excellent research.
His thinking on gold is spot on. I concur with him on acquiring the *gold ETF for a portfolio.* It is easy to acquire and trade it with the lowest costs. However, it does mean that you can never take possession of the gold. There is a saying that says, “If you do not hold it, you do not own it.”If you don’t have a share portfolio (or do) you would do well to *acquire the physical Krugerrands* rather. Yes, there is a risk of them being stolen from one’s home. That is why I offer my investors a free storage in my safe inside the best vault in Cape Town.
Read also
What if this is SA’s last election?: Gabriel Crouse
Justice Malala: How the ANC’s decline symbolises SA’s normalisation
Gayton “9/9” McKenzie predicts 25 PA MPs, very bad Election’24 for ANC/DA
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa’s rise to presidential power, narrated by our very own Alec Hogg.
Get the Audiobook
Narration by Alec Hogg
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BizNews – https://www.biznews.com/mailbox/2024/05/29/mailbox-david-melvill
