I have a question regarding gold in your portfolio. Does it make a difference if it's physical gold bullion that you hold vs. an ETF that represents gold? I feel like physical is better if you truly believe in a SHTF scenario, but an ETF is more convenient for smoothing out the bumps. It also is probably more satisfying to see the value in your portfolio rather than counting your doubloons like Scrooge McDuck and adding it manually to your portfolio.
About 10 years ago I was reading about the Permanent Portfolio and it seemed like many adherents had decided to go 50/50. The 50% ETF could be used for liquidity and routine rebalancing, while the 50% physical was for as you say the SHTF scenario, or in case it turned out the audits were fake and the ETF was actually not backed by gold. Of course the flip side of that is you go to check your physical and discover it's no longer there, in which case you have the ETF.
I think it's sensible and even optimal to have both.
As you say the great advantage of ETF is its practicality and liquidity which makes it easy to buy and suitable for asset allocation purposes.
Physical is the purest form of ownership - I don't necessarily think everyone needs that, but there is a certain place for it even in today's highly financialized world.
Physical is also treated very favourably from a tax perspective in many countries - for example here in the UK gold coins from our mint are CGT except, which can act as a huge overflow valve if you are one of those people who have used all your tax wrapper allowances while at the same time also doing some much-needed asset allocation work.
Additionally, owners of physical can sometimes be in line for a windfall if whatever coins take on some collectible value and develop some premium. In some cases this can be substantial and even growth or more than the value of the metal itself. Can't get that with a stock certificate.
Also very easy to pass down without the taxman taking an undeserved cut. As IHTs become an increasing source of tax revenue around the world I think this is actually hugely overlooked, and a better argument than "I may need to flee the country tomorrow with all my wealth in my fannypack."
