Investment Journal / Decisions
Gold — setting a weight cap and pausing new buys
- Decision
- Cap gold's total weight. My gold holdings are at a loss now, so I leave them unchanged and stop adding. When one of them returns to my purchase price, I sell enough to bring total gold down to the cap and move the proceeds out of gold. (On October 28 I replaced breakeven with market indicators for losing positions.)
- Why
- Gold stays as a hedge against currency debasement, but I avoid concentrating in one asset.
- Expected outcome
- By the review date (December 30), at least one gold holding recovers to my purchase price and is sold, with the proceeds reinvested outside gold so that gold's portfolio weight falls below the cap. (This is the expectation written on September 30. Since October 28, gold also falls under the losing-position rule and is judged by a market indicator.)
- Options not taken
- Define the target weight, add-on conditions and products all at once first, and pause buying until then.
- Keep buying as the preset signal says.
- Since the decision
- gold futures -6.9% (Oct 30)
below the decision-date close — an interim picture; whether it was right is judged on the review date