Important change in Our portfolio

It was time for a change. With the world in real danger of inflation, what used to be "safe" is not anymore. Treasury bills, Government bonds... are real dangers, because they can pay you back with the amount of money that it was supposed to be, but not with its purchasing power due to huge increase in money supply.

So, we have decided to start protecting ourselves. Perhaps, a little bit early, but we are patient enough to ride the markets these next years. The main ideas are:

i. To add almost 1/3 of the capital in gold.

ii. To start getting rid of sovereign bonds.

We are afraid that ETFs such as GLD, which we have used successfully in the past, will represent fiat money as they are not 100% backed up by physical gold. So, we have chosen a different kind of ETF with almost 100% physical gold ownership. We will start with 50% of the total amount for gold, to avoid buying in just one moment. Besides, we have moved our Euro Money Market fund to our Gold Mining Fund.

The Australian dollar has worked perfect, but its price is close to our target, so we have sold it to get cash to buy gold.

We have removed our EURUSD protection (selling ULE), because we will used gold instead.

The final portfolio can be found under Other articles (right column of the site) or here.