Good tutorial on Gold as a hedge

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
Hal
Executive Member
Executive Member
Posts: 1349
Joined: Tue May 03, 2011 1:50 am

Good tutorial on Gold as a hedge

Post by Hal » Sun Oct 24, 2021 4:11 am

And at the same time validates HB's thesis.
https://www.youtube.com/watch?v=Z3F4DJWquL0
Aussie GoldSmithPP - 25% PMGOLD, 75% VDCO
User avatar
seajay
Executive Member
Executive Member
Posts: 430
Joined: Mon Aug 09, 2021 11:11 am

Re: Good tutorial on Gold as a hedge

Post by seajay » Tue Jan 18, 2022 2:22 pm

US 10 year real annualized % total returns by decades

Code: Select all

Decade   72-79    1980’s    1990’s    2000’s    2010’s

stock         -2          26           14          -3            11
gold	        10.5      -7.2           -6          11             1
						
Average   4.25       9.4            4            4             6
In two of the last 5 decades poor returns from stocks saw modest/reasonable gains from gold
In the other three cases that flipped around

When drawing income (retirement) a bad/negative total return decade has income eating capital, potentially drawing down the core capital to critically low levels. It's generally better to have more consistent real gains such as the average of both stock/gold rather than either alone.
Post Reply