Thanks for the explanation.

Seems to align with whats said on pg 76 (Now I have read that far!)

So the PP makes sense unless gold/silver is ever remonetised.....

PS. You have to check out the bear hunters prayer on pg 134 !!

Currently reading a most interesting book on the Bi-Metallic monetary system of the 1800's.

https://archive.org/stream/coinsfinanci ... 5/mode/2up

The question comes to mind is why the PP uses gold only, as both silver and gold have been de-monetized.

Any comments?

Hal

Hi Marc,

Good to see you back again!
Also interested in your 50/50 Gold/Stocks proposal.....

Out of curiosity, what rebalancing bands would you use, and the rationale behind what you choose??

Libertarian666, feel free to comment seeing you are running 50% gold as well.

Hal

Would something like Rob Kirby's Portfolio be considered equivalent to Larry Swedroes Black Swan approach?? 1/3 Equity, 1/3 Cash/Bonds 1/3 Real Assets (Gold etc) ie 1/3 Risk 2/3 Low Risk http://taxoasis.com/files/EVERYTHING-You-Need-to-Know-About-Investing.pdf Any thoughts on this 3 x 33% approach? ...

This might help https://www.perthmint.com/storage/ also a friend uses this service in Singapore ( Jim Sinclair info:  http://www.jsmineset.com/2013/11/23/jim-sinclair-named-executive-chairman-of-singapore-precious-metals-exchange-sgpmx/ ) http://www.sgpmx.com/services/secured_storage/ From what I un...

Well..... I use the "Allocated" Perth Mint Depository Program, not the Certificate Scheme. They will send you the bullion from storage when requested, and if you wish to drop in, (bit hard from the USA), you can physically inspect your holdings. So honestly, I cannot complain about the &qu...

Exactly! A FRN is a piece of paper with some ink on it. Now, using your example of a piece of paper with your signature plus the word "Dollar" printed on it. We shall call it a "Techno - dollar". It's intrinsic value is nothing, it's just a piece of paper. BUT..... If the Arabs w...

Currency / Money from island of Yap https://en.wikipedia.org/wiki/Rai_stones [img]http://yap%20stone%20money.jpg[/img] What is the obligation? What is the intrinsic value? Is there really any difference between a piece of rock, a piece of paper or a piece of gold other than the value we "believ...

Ok, could not find anything for the current USD definition except as described as a Federal Reserve Note FRN definition: http://www.investopedia.com/terms/f/federal-reserve-note.asp Dollar definition pre 1965: http://wiki.mises.org/wiki/United_States_dollar so the blank would be... "A US Dollar...

OK, here is my understanding courtesy of Jim Sinclair.... A Dollar is basically common stock of a country, so you own a share of USA corporation. Just as you cannot "cash in" a share of a company (Eg Take in your IBM shares and redeem them directly for computers), nor can you redeem your d...

Another Aussie here.... Given a choice, I would go with the Unhedged International Share ETF . Had this same thought myself and after much research found that hedging doesn't make much difference with Shares anyway. BUT, I think the question you should be asking is what about the Cash, Bond componen...

Vaguely remember an article recommending 50/50 split between a Hard Currency Fund and a International Share ETF http://www.merkfunds.com/fund/mhcf/      (approx 20% Gold, 80% currencies) Giving a total of 50% Shares, 40% Currencies, 10% Gold This site gives an interesting discussion on repl...

My pennies worth.... Assuming you are into the PP for stability, not maximum return,  then I would play it by the numbers and not try to predict. This actuarial blog has a good article you can reference against from a non-PP perspective. http://actuary-info.blogspot.com.au/2011/02/gold-risk-or-rescu...

Thanks for your input. I was trying to think of a simple way of explaining the concept to an elderly person with no financial knowledge.  I discovered that if I cannot explain the concept in a few words, I really don't understand it fully myself. The concept of a 2/3 Savings (50% cash, 16.6 Gold) 1/...

Hello All, While I have had a PP for a while, I just realized I may have been over- analyzing things. Is this reasoning correct.... 1. There are two items in a portfolio, that being savings and investments. Savings should be a store of value.  Investments should (hopefully) increase in value but als...

I just had to share this find…..
Hal, 

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

update: found the original article  https://www.youtube.com/watch?v=tGhp8aST6mo Hello All, Came across an interesting trading methodology for PM's and was after some input. Briefly it works like this. When the Gold/Oil ratio is favourable - buy gold, http://www.macrotrends.net/1380/gold-to-oil-ratio...

Hello All, Been following this thread with interest. Few quick thoughts 1. In Australia, the AUD has gone from ~1.10USD to 0.7USD. So I am happy to hold some gold. (Could alternatively hold USD I suppose, not sure how though….) 2.Mathjak's approach to low volatility seems to be borne out by this art...

Thank you for your thoughts Pfanni. I think the approach to take will be: 1. If he has investments (denominated in Aud) outside the retirement plan, then just go for Global Bonds, Global Shares inside the retirement plan (plus buy some gold) 2. If there are very little funds outside the plan, then g...

Update: Looks like currency hedged international bond funds are not all that bad. See attached link https://institutional.vanguard.com/iam/pdf/ICRIFI.pdf?cbdForceDomain=true I was after some feedback in assisting an Australian friend setting up a PP in their superannuation fund (like a 401K) So the ...

Perhaps this series of articles will help with your decision? http://idiosyncraticwhisk.blogspot.com.au/2014/02/stockbond-asset-allocation-dont-bother.html#more Just increase your VP holding with other assets so you can sleep at night… Hal PS: Open question: What process did HB use to elimate compon...

Thanks for the input. I must admit this is a purely conceptual exercise as I am happy with the PP. However in the interest of learning more about economics...... Using the following definitions: Risk: The probability of not getting your capital returned (as mentioned in the Black Swan book) Volatili...

After watching a few videos of belangp on youtube, I was interested if this interpretation of the PP is correct: 1. The cash, bonds and share components are all investments. That is, funds are lent, and a return in addition to the capital is expected. (Dividends, interest) 2. The gold component is a...

Thanks for the explanation MachineGhost.  I have just finished a marathon session reading "How you can profit from the coming devaluation" written by Harry back in the 70's. This book answered my concerns about an exit strategy from the PP.  If I read correctly, the PP is for normal econom...

I have been following this thread with interest. Just a couple of questions that may enlighten beginners like me.... 1. Deflation: Is this definition correct?  http://www.investopedia.com/terms/d/deflation.asp   That is, Cause = Decrease in Money Supply, Effect = General Decline in Prices (Deflation...