15 min review ( with humour! )

https://www.youtube.com/watch?v=fswWHYhQSgE

Hello Sophie et al Just to clear up any misunderstanding. Initially I was considering a PP on the edge of the rebalance bands, so Option 1. (15% Gold, 15% Cash) =30% "Store of value ie savings" plus "35% Shares, 35% Bonds" =70% "Investments" or Option 2. (35% Gold, 35% ...

<snip> Yes, the volatility of #2 was terrible. But for investors with a long timeline, a higher equity allocation could make sense. The differences between 1 and 2 are not one percentage point; they are utterly life-changing . PP's and similar conservative portfolios may make more sense for the reti...

Appreciate your insights Sophie and Mathjak, Reality always trumps theory. Thanks for the reality check Sophie on what happens when things "do" go wrong. I note you both run a PP, and any extras can be done outside that. Especially like the Mathjaks method of having different portfolios fo...

Just some musing on the PP and interested in some opinions..... 1. Equities and Bonds give a potential of a real return on capital, so they are investments. 2, Gold and Cash (to a lesser degree) are stores of wealth, so they are savings. 3. Elderly people typically cannot tolerate large drawdowns on...

Well done !

I have long been interested in how (or if) gold hedges currency inflation of smaller nations.....

And soon I shall be "enlightened"

And for those interested in the economic theory / history James Rickards discusses I highly recommend visiting the Mises Institute

As a sampler... https://www.youtube.com/watch?v=ml2U9_Zi2QI

Well, it looks like the allocations may have changed. In the "Road to Ruin" book he advises Gold and Silver - 10% Cash (some in physical notes) - 30% Real Estate (Agricultural or income producing)-20% Fine Art Fund- 5% Angel and Venture Capital 10% Hedge Funds 5% High Quality Sovereign Bon...

Thanks for your comments. They prompted me to investigate a bit further, and while there seems to be some correlation, I cannot see a reason to hold silver. Except, perhaps, to trade the gold silver ratio which seems to recently be in a channel of 50/1 to 80/1. Suspect the author was trying to model...

In this article they talk about a variation to the PP

http://somehelpful.info/Finance/No-Brainer-PPF.htm

So the question is this.
While gold is thought of as a hedge against inflation, can silver fulfill this role as well?

Any other thoughts on the article are welcome !

I think it is equally important to decide when you will "NOT" rebalance... If a country's credit rating is not good would you really rebalance and buy more of their bonds? In the attached link they talk about how Italy's 90 day bills were converted into 10 year bonds without the bond holde...

So are the principles espoused by Benjamin Graham still valid today, or should you just say "I don't know what is going to happen" and go for the PP?

http://www.conscious-investor.com/books ... vestor.pdf

Another article along the same lines...

http://actuary-info.blogspot.com.au/201 ... escue.html

Hal

Thanks eufo, desert and Libertarian666, (edit: and stuper1 ! ) After some digging around I found the following results annualised over the past 10 years: Cash 3.6% Default Fund 5.24% and the expense ratios are buried so deeply, I cannot find them yet. Bear in mind Australia is coming out of a mining...

Thanks for the reply eufo, Unfortunately, its either all cash or all the default fund. Nice idea but..... And just to rub salt in the wound, you can only change your selection twice in a year! I am leaning towards this total allocation 25% Cash option: All in the retirement fund 25% Gold/Silver 25% ...

Hello All, Yet another fitting a retirement fund into the PP question ! If you have a dormant retirement fund that you cannot access, or contribute to, until ceasing work (5 years away approx) and it constitutes about 25% of your assets, is there any way to make a PP with this? The fund consists of ...

FWIW

Have a read of this article.
Rather than not start a PP at all, you may wish to use cash only instead of bonds......

http://idiosyncraticwhisk.blogspot.com. ... short.html

Hello All, Happened to come across this Vanguard VTINX Fund which nearly has a 2:1 bond/share ratio of both US and International bonds/shares. https://personal.vanguard.com/us/funds/snapshot?FundId=0308&FundIntExt=INT#tab=2 If you held gold as well to bring the portfolio to 75% VTINX 25% gold, h...

There was a controversial guy who used to post on here whose portfolio was basically 50% stocks and 50% gold. He claimed it was less volatile than one might imagine. If you have a fairly long time horizon to ride out some volatility, you might consider that portfolio, since you seem to want to avoi...

Jim Rickards recommended a monster box of 1 ounce silver coins. https://twitter.com/JamesGRickards/status/730621145683230720 From what I had been told during the fall of the old Soviet Union + WW2: Silver was for trading. Gold was to preserve your wealth through the crisis. Hope I never have to find...

For your reading pleasure

https://mises.org/search/site/iceland

and click on pdf for Deep Freeze

Enjoy
Hal

Thanks for your thoughts. So if you live in a "dodgy" country (eg. Zimbabwe) then run a US P.P. If in a good non US economy (eg. Singapore) then run a Bogle portfolio. Seems reasonable to me... On the extra gold or USD, is that included in the 40% fixed interest portion, or is it separate ...

I have finished reading a book called Meltdown regarding the Icelandic financial crash. It appeared that if you are in a small country, the best you can hope from gold is that it will preserve the purchasing power of 25% of your local PP. Now if there was a loss of confidence in the USD, I could see...

Good Find MG.

Having a good look around that site.
A second book found from the same era, with another speech (1st was the Monetary School)

https://archive.org/stream/coinsfinanci ... rch/speech

Also interesting insight into Banking and US politics of the era.

This is the 1890's view on cash. Read the section on "A greenbacker". Actually seems reasonable to me. https://archive.org/stream/coinsfinancialsc00harvrich#page/74/mode/2up/search/greenback but the part I really like is talking about National Debt https://archive.org/stream/coinsfinancial...