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Watching Dennis Gartman on CNBC now - well there's another point to consider. Gold - unlike corn - is a totally global commodity. There's gold in terms of US $ - gold in terms of yen - gold in terms of Euro - etc. Gartman likes long gold versus yen - but isn't interested in gold versus US $. Robyn
FWIW - I don't rebalance my portfolio (it's always lopsided ). But I thought people who rebalance usually do so on a schedule (like annually - quarterly - something like that). Robyn
Not necessarily.
Quote:
Originally Posted by mathjak107
the only thing dumb is buying when things are at highs. after falling 35% and with worst case plunges good for about 50% the downside has far less risk to it.
it is a perfect time to rebalance .
i am not a speculator myself as my gold is part of a master strategy but even at these levels odds are on the fact yesterday was over done.
but what i said is true about every asset class not just gold. no one knows when the out of favor investment of the year swings around because of events and is now the best investment to own again.
that is why good diversification owns them all and rebalances and buys more of the losers and sells some of the winners .
Under the PP principle promoted by Harry Browne, rebalancing is normally done when an asset comprises 35% or 15% of the portfolio - which is 25% cash, equities, long-term treasuries, gold. Some people use ETFs, some combine the actual bond and physical gold with ETFs.
MJ has talked extensively about this. You probably missed his numerous posts on the Permanent Porfolio. The PP isn't his only portfolio, nor is it mine. Nonetheless, many people put part - some a majority - of their long-term money into a PP.
But the return has been somewhat higher than inflation since the start of my CPI data set (1984). And what's your point? The QQQ has returned less than inflation since its peak. Does that mean someone shouldn't buy the QQQ? Robyn
My point is Gold isn't an investment
Stocks are an investment because they pay a dividend and appreciate in value.
Stocks have absolutely crushed gold historically.
You buy gold to either hedge or because you think inflation will pick up
It isn't an investment that is my point! All these idiots crying that they think the world is going to end are fools.
Belief in gold is no different then belief fiat currency. YOu can't do anything with either the both rely on faith.
Watching Dennis Gartman on CNBC now - well there's another point to consider. Gold - unlike corn - is a totally global commodity. There's gold in terms of US $ - gold in terms of yen - gold in terms of Euro - etc. Gartman likes long gold versus yen - but isn't interested in gold versus US $. Robyn
Keep trying to convince yourself that gold is an investment.
YOu will lose your shirt, you aren't a speculator and you haven't figured it out vs. all the other financial professionals.
Gold has been on a 10 year run and has a lot to fall
really????????? well i guess you must have the crystal ball the rest of us don't.
I understand the difference between investing and speculating. You don't seem to get the distinction.
I have no crystal ball and have no idea where the price of gold is going. You seem to be advocating investing in gold as a way to bet on the price movements.
i am not advocating gold as a speculation at all. once again you are dreaming. it is part of a balanced portfolio with a very distinct job of flying fighter cover.
when it comes to speculating it is you , you are always speculating that anything except what is in your uninformed head is a bad speculation.
a stratagey that does not bet on one particular outcome or asset class is not a speculation.
i don't care what the asset class is there are times it is riskier than others .
gold after a 30% drop is less risky than treasuries or even equities right now. but that can change on a dime for anyone of them. more folks lost money in their homes than they did gold . long term treasuries are very risky right now too. but one black swan event can turn them into great performers again.
the point is anyone who singles out any one asset and goes don't buy it you will lose your shirt is someone who i would never want to take any investment advice from ever.
Last edited by mathjak107; 04-16-2013 at 04:34 PM..
No. Gold fiends hedge their "bet" on the US dollar w/ gold by thinking if the $ collapses, at least they have all those lbs of gold. So many holes w/ that strategy.
Quote:
Originally Posted by LordBalfor
Um, GOLD is backed by nothing but the faith that it's valuable (or more precisely, backed by nothing but the faith that ONLY gold is valuable - and that fiat currencies are not. As that faith collapses so does gold).
Ken
Good lord. Relax. You assumed I was talking about the $, but I was talking about gold.
Why would anyone listen to Glenn Beck vs Warren Buffett? When has Glenn Beck become an intelligent investor, I thought all he knows is bad mouth the govt, and made all his money doing is.
Warren Buffett said no to Gold, and you want to bet him against him?
Gold is like any currency trading now days .Bascially it driven by speculation since its not like other usage commodies.First sign of it being dumped was the large market for gol;d jewlery slowing because of price in countries like India.Thepriice just got beyond what people would pay in jewlery. The jewlery makers actaully stopped buying it hurt their business so much.
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). But I thought people who rebalance usually do so on a schedule (like annually - quarterly - something like that). Robyn
