Portfolio a alokace
Gold in Your Portfolio: How Much and Why
Key takeaways
- Gold does not automatically rise during crises, but on average it shows low correlation with equities.
- Exposure can be gained through physically backed ETCs traded on exchange, for example those domiciled in Ireland.
- Recommended allocation ranges from 5 to 10% of the portfolio; more than that unnecessarily drags on returns.
- Gold generates no dividend or coupon, so it cannot fill the role of an income component.
- Regular rebalancing keeps the weight within a band without needing to monitor daily prices.
Gold in a portfolio is insurance, not a return engine — it reduces overall volatility through its low correlation with both equities and bonds. This does not mean it always rises when stocks fall; it means it moves differently from the rest of the portfolio.
Why add gold at all?
Equities and bonds tend to decline simultaneously during inflationary shocks or monetary uncertainty. In such periods, gold has historically moved at a different pace. The result is a lower maximum drawdown for the whole portfolio, even though gold's average return lags behind equities.
What percentage makes sense?
Academic models and the practice of long-term investors converge on a range of 5–10% of total assets. Below 5% the effect is negligible; above 10–15% gold already significantly reduces the portfolio's long-term return, because it creates no cash flow.
- 5% — symbolic diversification, minimal impact on return
- 8–10% — noticeable smoothing of volatility, equities still dominate
- 15% and above — crowds out the bond component, usually unnecessary
How to buy gold in practice?
For the retail investor the most accessible option is physically backed ETCs (Exchange-Traded Commodities) on EUR-denominated exchanges. Each certificate is backed by physical gold held by a custodian. Look for UCITS-compatible products with a low annual fee (TER below 0.20%) and domicile in Ireland or the United Kingdom. Physical gold coins or bars are an alternative but add insurance costs and more complex logistics.
Rebalancing the gold allocation
Because gold moves differently from equities, its weight drifts over time. Set a band — for example ±3 percentage points from the target weight — and rebalance once a year or on a larger deviation. When building your first portfolio, feel free to add a small gold allocation from the start and adjust it later. For context on how diversification across asset classes works, see the All World vs. S&P 500 comparison.
FAQ
Is gold a necessary part of every portfolio?
No. For investors with a long horizon of over 20 years and high tolerance for fluctuation, gold is optional. It adds the most value for those who want to reduce the maximum drawdown during crisis periods.
How do you buy gold as an ETF or ETC?
Through a standard broker you can buy a physically backed ETC on exchange. Look for a product with a TER below 0.20% and physical backing. It is not a true ETF, but it trades the same way — during a normal trading session, just like a stock.
Will gold in a portfolio affect my taxes?
The sale of an ETC or physical gold is subject to income tax in the Czech Republic. A three-year holding period applies: after three years from purchase, gains on physical gold are exempt from tax. ETCs (securities) follow the same test. Always verify the current rules with a tax adviser — this is not tax advice.
Does it make sense to buy gold coins vs. ETCs?
ETCs are more liquid and cheaper to manage. Physical coins are popular with investors who want a tangible asset, but they carry insurance and storage costs. The return (or rather the absence of return) is the same in both cases.