Is Gold Investment Necessary? Why I, an S&P 500 Investor, Save Only 1,000 Yen a Month [For Beginners]
“Is the S&P 500 enough on its own?”
“Should I also hold gold?”
“I’ve been hearing a lot about gold lately, but is it too late to start buying?”
When you start investing, these kinds of questions arise.
For me personally, the core of my wealth building is the S&P 500.
Currently, I save 20,000 yen every month in the following way:
S&P 500: 14,000 yen
NASDAQ 100: 5,000 yen
Gold: 1,000 yen
I invest in this manner.
I shared this breakdown in a previous article, but
“Why only 1,000 yen for gold?”
some of you might have wondered.
I will state my conclusion first.
I do not believe that gold is an asset that everyone must hold.
The S&P 500 alone is fine.
Stocks and cash alone are also fine.
I believe that choosing not to hold any gold at all is also a valid option.
Even so, the reason I save only 1,000 yen in gold every month is because
I want to give my portfolio a small amount of exposure to a role that is different from the S&P 500 or NASDAQ 100.
In this article, I will explain
“what the significance of gold investment is.”
Starting from the basics,
I will organize things so that those who invest primarily in the S&P 500 can consider whether they should include gold in their portfolio.
I will organize this so you can think about it.
Conclusion | I do not make gold the “star” of my portfolio.
My current investments are positioned as follows:
S&P 500 = the foundation of my asset building.
NASDAQ 100 = a slightly more aggressive addition.
Gold = a small portion of assets other than stocks.
This is how I position them.
I do not think gold is superior to the S&P 500.
Conversely,
“Gold is safe, so I should just buy it for now.”
I do not think that either.
For me, it is strictly
a presence for adding a small amount of assets with different characteristics than stocks.
.
That is why I invest 1,000 yen every month.
Out of a total investment of 20,000 yen,
I keep it at only 5%.
I am doing this.
What exactly is gold investment?
There are several ways to invest in gold.
For example:
Purchasing physical gold.
Investing in a gold accumulation plan.
Buying ETFs that track the price of gold.
Investing in mutual funds that invest in gold.
And so on.
In my case,
I have chosen the method of investing 1,000 yen monthly through mutual funds
is the method I have chosen.
I do not keep physical gold at home.
My purpose for holding gold is also not,
“I want to own gold itself”
but rather,
I want to include a small amount of assets in my overall investment portfolio that may move differently from stocks
is what it is.
Even in the 2026 analysis by the World Gold Council, gold is described as an asset used for portfolio diversification due to its price movement differences compared to stocks and other assets. However, it does not mean that gold will always rise when stocks fall. World Gold Council
What are the benefits of gold investment?
There are three main benefits that I feel.
1. It can show price movements different from stocks
Most of my investments are in stocks.
S&P 500.
NASDAQ 100.
Since both consist of stocks,
if the entire stock market drops significantly, both could be affected.
Therefore,
I hold a small amount of gold, which moves based on factors different from stocks.
This is the biggest reason why I include gold.
In fact, there is analysis suggesting that gold’s correlation with stocks can decrease or become inverse during periods of high market stress. World Gold Council
However,
“If stocks fall, gold will definitely rise”
is not what this means.
Gold is also an investment asset that fluctuates in price.
2. You can hold an asset with different characteristics from stocks
The value of stocks changes based on corporate growth and profits.
On the other hand, gold is not a company.
It is not an asset directly influenced by the performance of any specific company.
Therefore,
you can hold an asset that is different from just stocks.
This is what it means.
For me,
it’s just a feeling of “not leaving everything to stocks, but holding a little bit of something else.”
That’s about it.
3. It can be incorporated even with a small amount
I don’t invest tens of thousands of yen in gold
every month.
It’s only 1,000 yen.
Even so,
I can see “how gold actually moves”
with my own money.
Instead of just reading about it in books,
I am actually holding it and experiencing the price movements.
In that sense, too,
I feel that about 1,000 yen a month is just right for me.
I also want to know the disadvantages of gold investment
Of course,
adding gold doesn’t solve everything.
Rather,
“Gold = Safety”
I want to avoid buying it solely on its own.
1. It does not generate dividends or interest
With corporate stocks,
a portion of the profits may be paid out as dividends.
With bonds, there is interest.
On the other hand,
gold itself does not generate profits.
Just by holding it,
you will not receive annual dividends from gold.
This is one of the reasons why I make stocks, not gold, the centerpiece of my asset building.
2. Gold also drops in value just like anything else
When you see the term
“safe asset”,
you might feel like it doesn’t lose value.
However,
the price of gold also fluctuates.
There are times when the price drops after you buy it.
Therefore,
I do not take the approach of
putting money needed for daily life into gold.
3. There are also costs for investment trusts and ETFs
For investment trusts, there are costs such as trust fees.
ETFs also have management costs.
Therefore,
it is necessary to check not only
“whether you should hold gold”
but also what kind of products you use to invest.
Is the S&P 500 alone not enough?
This is something I have thought about myself.
In conclusion,
I believe that
the S&P 500 alone is not at all bad.
Rather,
if you can be satisfied and continue with long-term accumulation using only the S&P 500 without increasing the number of products,
there is no need to force yourself to add gold.
Adding gold does not mean it becomes a “superior version” compared to just the S&P 500.
It is just a different asset class.
The choice depends on your investment goals.
Consider your risk tolerance carefully.
Make your own informed decision.
The reason I include gold is
not because the S&P 500 alone is insufficient, but because I personally want to hold a small amount of assets other than stocks.
This is a major distinction.
If the only reasons were
“because everyone else has it”
or “because gold prices have been rising recently,”
I would not bother adding it.
3 reasons why I only accumulate 1,000 yen of gold per month
So,
why do I hold gold while
limiting it to only 1,000 yen per month?
There are three reasons.
Reason 1: Because I believe stocks are the main driver of wealth accumulation
My current monthly investment amounts are
S&P 500: 14,000 yen
NASDAQ 100: 5,000 yen
Gold: 1,000 yen
respectively.
In terms of percentage,
S&P 500: 70%
NASDAQ 100: 25%
Gold: 5%
is the breakdown.
Currently, I
prefer to focus on stocks for long-term wealth building.
That is why gold is
strictly a supplementary asset.
I am not trying to significantly increase my assets through gold.
Note that this 70%, 25%, and 5% ratio refers to the allocation of my monthly investment amount, not my total current holdings.
Reason 2: Because I want to hold a small amount of non-stock assets
Both the S&P 500 and NASDAQ 100 are stocks.
Especially in my case,
since I have also added the NASDAQ 100,
my portfolio is heavily stock-centered.
Therefore,
I include a tiny amount of
assets that may move differently from stocks
within it.
Analysis by the World Gold Council shows cases where a hypothetical portfolio incorporating a certain percentage of gold improved historical performance and maximum drawdown. However, this is an analysis based on past data and does not guarantee future results. World Gold Council
My 5% ratio is also,
It is not because “5% is the correct answer.”
It is not that.
It is simply that for me right now, this amount is easy to hold as a supplementary role.
That is all.
Reason 3: Because I want to think while holding a small amount first
When investing,
you might think,
“I want to complete the optimal portfolio from the start.”
However,
I don’t think that far right now.
First, hold a small amount.
Watch the price movements.
Learn how you feel about it.
If your asset balance or living situation changes,
revisit the ratio as needed.
I think that is fine.
At 1,000 yen per month,
even if gold drops significantly in price,
the impact on my entire portfolio is limited.
Therefore,
An amount to learn while actually holding it
is also what it means.
How do I balance S&P 500, NASDAQ 100, and gold?
To summarize my current way of thinking,
Investment Target | Monthly Savings Amount | Percentage | My Role for It | S&P 500 | 14,000 yen | 70% | Foundation of asset formation | NASDAQ 100 | 5,000 yen | 25% | A little aggressive addition | Gold | 1,000 yen | 5% | Holding a small amount of non-stock assets
is it.
I don’t think this is the optimal ratio for everyone.
I myself,
have not decided to keep this ratio until 10 years from now.
This was just
the allocation that I can continue without strain and explain the role of each
for my current self.
That is all.
The reason I don’t increase gold more
“If it provides diversification, shouldn’t you make gold 20% or 30%?”
you might think.
But,
I don’t intend to increase it that much right now.
The biggest reason is,
because stocks are the main character of my asset formation.
is.
I expect gold to play a role in diversification, but
it does not generate dividends or interest.
On the other hand,
my goal is to grow my assets over the long term.
Therefore,
gold is strictly a supplement.
It is not about not holding it, but about not holding too much.
I am currently maintaining that balance.
Can gold serve as a substitute for an emergency fund?
Regarding this,
I consider them to be completely separate things.
The 3 million yen emergency fund I am aiming for is
in case something happens,
cash to be used immediately
is.
On the other hand, gold is
an investment asset whose price fluctuates.
For example, on a day when you suddenly need 1 million yen,
there is a possibility that the price of gold has dropped.
That is why I
do not consider 1 million yen in gold to be the same as 1 million yen in emergency funds.
Money to protect your livelihood should be cash.
Gold is simply one of the investment assets to hold for the long term.
I keep these two separate.
Is it too late to start buying gold now?
I think this is also a point of concern.
Especially when you see news about rising gold prices,
you might think,
“Won’t I be buying at a peak if I start now?”
I myself,
do not know if the current gold price is high or if it will rise further.
Therefore,
I do not try to predict the bottom price.
It is not a case of,
“I’ll buy a large amount when it gets cheaper,”
nor is it,
“I’ll miss out if I don’t buy a lot right now.”
I just invest 1,000 yen every month.
This is the approach I am currently taking.
It might go up further in the future.
It might go down.
I do not know.
That is precisely why,
deciding why you hold it is more important than predicting the price
I believe that is what matters most.
People who should hold gold vs. people who do not necessarily need to
Even after reading this far,
you might be thinking,
“Should I hold it after all?”
If I were you, I would think about it this way.
People who might want to consider gold
You feel a bit uneasy with a portfolio consisting only of stocks.
You want to include assets with different characteristics than stocks.
You intend to hold it for the long term, not the short term.
You can refrain from selling immediately even if the price of gold drops.
If you are this type of person,
I think it is worth looking into gold.
People who do not necessarily need to hold gold
I am fully satisfied with just stocks like the S&P 500.
My emergency fund is still insufficient.
The more investment products you have, the more troublesome management becomes.
You only want to buy it because it has been going up recently.
In these cases,
you don’t have to add it unnecessarily
I think.
Investing is not
necessarily better just because you have a large number of products.
If you are wondering whether to include gold, consider these three things
Finally,
before I buy gold,
I would consider these three things.
1. Why do you want to hold gold?
Is it because
it has been going up recently?
Or is it because
you want to hold assets different from stocks?
If the purpose is different,
the approach changes.
The reason for buying also changes.
② Do you have separate emergency savings?
Gold is not cash.
There is a possibility that the price will drop.
Therefore,
first, check if you are investing money that is actually needed for daily life.
I would prioritize this.
③ Can you keep holding it even if the price drops?
Gold also experiences declines.
If you buy it thinking,
“It’s a safe asset, so it’s absolutely fine,”
you might get scared when it drops more than you imagined.
Therefore,
invest an amount you can hold even if it drops.
This is a mindset I value,
whether it’s the S&P 500 or the NASDAQ 100.
Summary | Gold is not essential. I only hold 5%.
For me, gold is
not the main character of wealth building.
Build the foundation with the S&P 500.
I take a slightly aggressive approach with the NASDAQ 100.
And,
I hold just 5% in gold.
For now, this structure suits me.
However,
You can build assets without gold.
The S&P 500 alone is fine.
Cash and stocks alone are also fine.
What is important is,
being able to explain why you hold it, rather than just because ‘everyone else has it’.
The reason I hold gold is,
because I want to add a small amount of assets other than stocks.
That is why,
it is 1,000 yen a month.
It is only 5%.
In the future,
if my asset size, living situation, or way of thinking changes,
I think I will review this ratio as well.
There is no need to complete a perfect portfolio from the start.
Start with a small amount,
Think about it while actually owning it.
I think that is fine.
And,
When you are wondering,
“Should I buy gold too?”
don’t think about whether you need gold, but rather what you expect from gold.
Start by thinking about that.
I believe that is the most important thing.
Thank you for reading until the end.
If this article was even a little helpful, I would be happy if you like and follow.
Also,
“I’d like to see how a 20,000 yen monthly investment changes in the future”
if you think that, I would be encouraged to write future articles if you support me with a tip.
Read also
I write about how I allocate 20,000 yen every month among the S&P 500, NASDAQ 100, and gold, as introduced this time.
I summarize why I focus on the S&P 500 while also saving in the NASDAQ 100.
▶ How much emergency fund is necessary? Guidelines and why I am aiming for 3 million yen
I write about why I secure cash that can be used immediately, separately from gold.
I have written about the reasons why I chose the S&P 500 as the core of my asset formation.
Reference Information
・World Gold Council “Gold as a strategic asset: 2026 edition”
・World Gold Council “Gold’s key attributes – Diversification”
The World Gold Council analyzes the diversification effect of gold by utilizing its differences in correlation with other assets such as stocks. However, this is an analysis based on past market data and the like, and it does not guarantee that incorporating gold will necessarily prevent losses or improve future investment performance. World Gold Council
*This article is based on the author’s personal experience and way of thinking, and does not recommend any specific financial products or investment methods. Gold, investment trusts, stocks, etc., carry the risk of loss of principal due to price fluctuations. Past performance and analysis do not guarantee future investment results. When investing, please check the latest information, fees, and risks of the products yourself before making a decision.