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...

I have used SGPMX to store PM's (not trade) and have had no problems.  You receive a holding statement from their storage facility and pay a storage fee annually.  Have found them very prompt in answering queries, so I have no complaints.  Since they are quite new, I would suggest only trying them o...

Following from what SamuraiDog wrote earlier... I was seriously considering dropping the PP and going more towards a 50% stocks/50% gold allocation. I too happened to watch that clip.  If my memory serves me correctly, in the new Permanent Portfolio book it talks about an option of replacing the Lon...

Hello Bron, I was reading that article as well today.  Had a look at the PRPFX as mentioned in the text and found (if I am reading it correctly) that their average bond duration is only 4.09 years. Not the 30 year bond and Cash barbell. http://www.permanentportfoliofunds.com/pdfs/perm/PRPFX.pdf Also...

All the best for the New Year,

Just thought I would share this newsletter link with everyone.  The PP is becoming more widely known and Harry gets some recognition !

Hal

Hi PointedStick,

So you are really keeping the same ratio Harry recommended for the US PP.  30 year LTT purchase and 20 year sale becomes 15 year purchase and 10 year sale. (but with a 35% allocation to bonds overall).

Thanks for the explanation
Hal

Hi SarahJane and CraigR,

Another Aussie here, but my book is still in the mail...

With the 15 year bond, is that sold when it hits 14 years and a new 15 year bond purchased?
SarahJane; I had set up a PP for my parents and myself about a year ago. Works well. Welcome aboard.

Hal

Hi AB, Thanks for the update on the Capital Gains Tax. Looks like the law has changed, however from the ATO link it appears you can still claim some Capital Losses. http://www.ato.gov.au/individuals/content.aspx?menuid=44869&doc=/content/00270245.htm&page=26 While the rules apply to company ...

Hi AB, Must admit I found the bond component of the PP the most difficult to set up. While I am not an expert on Bonds, the accountant advised: 1. In the PP the lower maturity bonds are sold and always replaced with higher maturity dates. Therefore as the bond allocation will always be roughly the s...

Hi AB, With regards to your question on the bond ladder. The plan at the moment is to have a series of bonds from 1 to 10 years. As each matures, then it is to be reinvested as a "new" 10 year bond. My accountant advised that if I sell before the maturity date, then capital gains tax could...

Hi AB, As another PP'r from Australia, I thought I would share with you my approach to the Bonds Have a 50% allocation using a ten year bond ladder. See Clives earlier helpful advice for further details. When I started this, the 10 year bonds were the longest duration, but its interesting to note th...

Hi Adam,

The link to the Perth Mint below explains the different options.

http://www.perthmint.com.au/investment_ ... etals.aspx

MT; Sure, plenty of room. Don't know if you will like the view 

http://www.stayz.com.au/15738  (I wish......)

Hal

Some information on the Perth Mint from someone who lives in Australia.... There is a Perth Mint Depository Scheme (PMDS) and a Perth Mint coin shop. With the silver shortage a few months ago, you had to wait to get an order from the coin shop, but orders placed with the PMDS were filled immediately...

Just a quick update; After having a chat with the elderly lady and explaining the options, she has decided to go for the PP. She also passes on her thanks for everyones advice. (So you have done your good deed for the day  :) ) As an aside; she was wondering why her financial advisor didn't tell her...

We do not seem to have the age of the pensioner.  For my elderly mother I do not want to be responsible for any loss even temporary of capital.  Anything volatile is therefore out.  At my suggestion all her savings have been fed gradually into the UK equivalent of I-Bonds. Thanks for the suggestion...

What is the investment objective of the $20K for the pensioner?  Income?  Preservation of capital? PRPFX declined 25% in value when the S&P 500 declined 50% during the depths of the financial crisis (I presume the 4x25% version declined in a similar fashion). I think the objective is more capit...

Hi MediumTex,

She has no debt and the (very modest) house is paid for.
Other than the 20K, no other assets.

Hal

Hello All, Just after some opinions regarding the PP for an old age pensioner with a small amount of funds. Would it make sense to set up a PP with around $5000 in each of the four investment categories (20K total). After being asked about this, I am wondering if it wouldn't be just as effective to ...

After asking a few people whose parents lived through the 30's Depression and WW2 their view was: "Gold and Silver are great for preserving wealth so it can be used after a crisis, however when the SHTF you want food to trade" They got out of Europe with enough gold coins to start their li...

Thanks for the ideas,

As a beginner to the PP, is the gold/silver holding an investment (in which case larger size coins/ bars would be more suitable) or is it insurance in case fiat currency becomes worthless (in which case small silver 1 oz coins would be more useful)?

Hal

Thanks for the comments, However......  the Perth Mint sells small 1 oz bars, or 1 oz gold coins, so it was really a choice between those! If I had 400 oz bars I would be off living somewhere in the Pacific Islands  :) (definitely not working!). With the silver, I was thinking of getting 10 oz bars,...

Hello All, I am in the midst of setting up the gold section of the permanent portfolio and was interested in your opinions. At the moment I have some unallocated gold / silver at the Perth Mint and wish to take delivery. Harry recommended 1 Oz gold coins.  However, the fabrication cost for a coin is...

Thanks Clive, It makes sense now. If you hold to maturity, the yield is the main factor. Therefore, if you get similar yields between, say 5 and 10 year bonds, the shorter dated bonds give more flexibility. And you are ready to take advantage of higher yields on longer dated bonds if the opportunity...

Thanks for the extra infromation Clive, I am finally starting to understand the bond concept, especially the holding to maturity compared to the trading approach. Just two queries; 1. When you have to rebalance the portfolio, do you simply sell off the bonds that have had the highest increase in val...

Thanks for the most informative posts! I should have been more careful with my terminology. I was meaning a deflationary depression in the first post. Clive, it makes sense now that I realise there is a significant difference between holding to maturity compared to trading LT bonds. When it comes to...