Tonight finished reading Rickards's End of Money book.Austen Heller wrote: ↑Thu May 07, 2015 3:23 amGlad that I'm not the only one who chose this deviation from the 4x25. I still have abundant respect for those who have stayed the course with the 4x25, it's just not for me right now.Desert wrote: That's pretty much what I switched into, about 26 months ago. I still like the PP, and think it's a great portfolio. But I prefer something closer to 30% equity, 60% 5-10YT, and 10% gold. 10% gold happens to be about the max I'm comfortable holding in physical form as well, so it's a good match for me personally. I don't expect any long term real return from gold, so I hold it almost entirely as a sort of disaster insurance. And it's also very shiny.
Sometimes it is not that a person is scared to hold gold, fearful of price declines. Rather, as Desert points out, there is the real-world problem of holding large amounts of physical gold bullion. I have yet to hear of a reasonable solution. Getting a bunch of safe deposit boxes at banks, getting a heavy home safe, hiding coins in your walls and inside your peanut butter jars and bags of rice, keeping it at the Perth Mint, holding paper ETFs, etc.......I have never gotten comfortable with any of these solutions, so now I just don't have much of a gold allocation, even though I think that gold is probably the most reasonably priced of the 4 PP components.dutchtraffic wrote: It's quite funny and sad to see how everybody is scared to hold gold..
It is by F A R the safest asset if you compare it to the other 3. (obviously not in paper form)
In his concluding chapter he recommended holding 10% to 20% in gold (but no more).
He also recommended holding it in physical form but NOT in banks. He did not get more specific beyond that. No answers to any of the real questions Austen Heller asks above regarding holding gold in physical form.
By the way, he had a long, long chapter about how various entities DO manipulate the price of gold.