Gold Rush 2025: Should You Get In?

·15 min·1 clip

Gold spiked 44% in a year, but Phil warns against FOMO investing at record highs.

Phil Putney, a CPA and Personal Financial Specialist, hosts this episode to analyze whether investors should add gold to their portfolios. He and his co-host examine the recent surge in gold prices and the common investor anxiety surrounding it. The discussion is prompted by widespread questions from clients and even a 92-year-old acquaintance asking how to acquire gold. The GLD ETF, representing spot gold, closed at $270.74 and is up 11.8% year-to-date and 44% over the last year. Putney notes gold's three-year average return is 15.19%, meaning nearly all its recent gains occurred in the last 12 months. He cites potential economic triggers like new tariffs, general economic slowing, and the BRICS nations' exploration of alternatives to the U.S. dollar. The conversation outlines two primary ways to own gold: through an ETF like GLD or by purchasing physical bullion or coins. Physical gold involves markups above the spot price and requires secure storage and discretion. A key insight is that the GLD ETF does not generate income and must sell small amounts of its holdings monthly to cover its fees. Putney provides volatility metrics, stating gold has a standard deviation of nearly 17% and a historical maximum drawdown of almost 46%. He contrasts this with the S&P 500, which has a similar standard deviation of 16% but a larger 55% drawdown. The hosts conclude that for portfolio diversification, a small allocation of under 5% to a gold ETF can act as an insurance hedge. They caution that buying after a 44% surge risks buying at a peak driven by fear of missing out. The tone is conversational and educational, blending straightforward financial data with relatable anecdotes. It is advisory in style, offering practical warnings and portfolio considerations without giving direct investment advice. Listeners interested in portfolio diversification, hedging strategies, or understanding the current gold rally would find this episode valuable. Those seeking specific stock picks, guaranteed returns, or who are only interested in income-generating assets might choose to skip it.

As heard by us

Gold gets a disciplined portfolio check, not a sales pitch.

Gold is often treated like an automatic answer when markets get rough, but Phil Putney and his cohost slow that reflex down and ask what it actually does for a retirement portfolio.

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Why you'd press play

You want a sober read before chasing gold's latest run.

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