Precious Metals anchor portfolio stability
21 Jan 2022 close: Our Precious metals portfolio allocation has increased as logical consequence from weaker crypto and higher metals prices. Gold was higher but not particularly strong last week with more attention leaning on Silver, Platinum and Palladium. Typical for a Friday gold sell off from the highs going into the weekend but the yellow metal still ended about 1% higher for the week. We strongly sense the importance of Precious metals serving a real purpose to better balance portfolio risk. Gold technical indicators do not show extreme risk weight either way. The broader financial market feels and mainstream media also voices geo-political and financial tension which, in our simple risk management approach, traditionally favors holding precious metals. The agressively promoted alternative media narrative that digital money will supersede gold is possibly a very long term potential, but it does not help anyone in today's market as long as wee see volatility building up in all asset classes. To the point even that we no longer follow any of the YouTube hype which is getting very confusing with most influencer journalism just playing the advertising market for short term gains. A crazy world that doesn't serve much purpose anymore. No Change to our above average gold allocation.
14 Jan 2022 close: In Mainstream and Alternative media attention is increasingly focussed on Fed policy and Bitcoin maximalists, keeping all asset classes on high alert. Our tools still favor Gold medium term even though last years price action continues to make technical analysis harder due to the longer consolidation, in the 1700-1900 range, we are seeing typical whipsaw patterns and associated trading risk. From a financial risk perspective, we remain committed and unchanged with our Precious metals allocation which we consider the more responsible anti Bitcoin maximalist approach fuelled by a highly uncertain western world macro-economic outlook. Owning low risk crypto and precious metals in even spread and some cash is the only reasonable allocation diversification we can consider. We update upon any change.
Gold/USD risk position relative to
Quarterly, Monthly, Weekly and Daily risk weight data.
(Previous update in brackets)
|Au Trend||↑ (↑)||↓ (↓)||↑ (↑)|
|Au % Risk
|42 (40)||52 (54)||81 (76)|
Portfolio allocation 50% (40%)