The GOLD scream room

[Vil]

there is nothing that ever goes up all the time, except stocks! Screw this pp thing. I am going 100% stocks!

Agree on PP. I will become TIPS investor (TIPS are cool and heard they are expected to be even more cool this year )

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[mathjak107]

Which means odds are inflation fears were over done and tips get stuck holding the hot potato.

Any time we think we got it figured out stuff we didn’t plan on alters that course .

We have had trillions and trillions pumped into the economy since 2008 and this is as high as inflation got .....pretty pathetic when you think about how much was was pumped in and was unprecedented

[dualstow]

My edit:

Which means odds are inflation fears were over done and tipsBogleheads holding TIPS get stuck holding the hot potato.
...

[Vil]

We have had trillions and trillions pumped into the economy

You know I still have difficulties assimilating what a trillion USD mean.. I think it was pmward explaining the magnitude of it (giving the example of trillion seconds that equal 31709 years....)

[Cortopassi]

Examples. A billion is measly!

http://www.pagetutor.com/trillion/index.html

[Ugly_Bird]

Examples. A billion is measly!

100 trillion :-)

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[Vil]

Examples. A billion is measly!

Haha, thanks, visual representation makes it easier...
Personally, I'd rather imagine that there is some programmer somewhere and he is instructed to utilize the shift left (<<) operator, that's well known from several programming languages as the fastest way to multiply a number with 2^n (where n is the number voted by Congress).

[Vil]

-0.74% in USD, -1.29% in EUR (as USD is rising). How long should we wait

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[Kriegsspiel]

-0.74% in USD, -1.29% in EUR (as USD is rising). How long should we wait

Re-balancing band.

[Vil]

-0.74% in USD, -1.29% in EUR (as USD is rising). How long should we wait

Re-balancing band.

Krieg, sorry, guess was not clear, I am joking.
Btw, if I can recall (think was in Craig's book) PP did not do that bad even without rebalancing..

[buddtholomew]

Buying some IAU @ 17 now.
Out at 17.79 and in at 17.02

[Cortopassi]

Ahh, gold, the asset I continue to love to hate.

Buy stocks! Gold sucks!

[buddtholomew]

Ahh, gold, the asset I continue to love to hate.

Buy stocks! Gold sucks!

For me, it’s having more stocks than gold that allows me to stay with my precious metals allocation.

[Don]

Is there an explanation why gold fell 2.5% today?

[Cortopassi]

About the same reason why Nasdaq and Dow just keep going up, I guess.

The answer can come in many forms, but the real answer is I Don't Know.

What we do know is when this happens, people usually pile on for a spell, so expect lower.

mathjak is pretty good at timing these. I wouldn't be.

[Tortoise]

When gold's price drops sharply, it's because one of us recently bought a lot of it.

When gold's price jumps sharply, it's because one of us recently sold a lot of it.

The gold market's movements make a lot more sense when viewed through that explanatory lens.

[dualstow]

Is there an explanation why gold fell 2.5% today?

Stronger dollar.

[Cortopassi]

When gold's price drops sharply, it's because one of us recently bought a lot of it.

When gold's price jumps sharply, it's because one of us recently sold a lot of it.

The gold market's movements make a lot more sense when viewed through that explanatory lens.

[Kriegsspiel]

Theory checks out.

[Vil]

Stronger dollar.

Though what comes first (chicken vs egg) - weaker gold or stronger dollar .. In the recent case we had the weaker gold coming first (months in advance to stronger dollar, that came only recently), so it might be that's not the explanation.. My overly simplistic explanation is that following the turmoil money flows simply got back to risk-on asset classes - non-existing money pushing up ridiculous valuations, voilla

[dualstow]

Stronger dollar.

Though what comes first (chicken vs egg) - weaker gold or stronger dollar .. In the recent case we had the weaker gold coming first (months in advance to stronger dollar, that came only recently), so it might be that's not the explanation.. My overly simplistic explanation is that following the turmoil money flows simply got back to risk-on asset classes - non-existing money pushing up ridiculous valuations, voilla

Stronger dollar is just what i read, but I’ll buy the above....if i understand it correctly.

[buddtholomew]

I told you when I sold and when I bought...what more do you want to know? >:

Fixed income yields also play a large role as last I checked gold doesn’t pay a dividend. Yields up, bonds attractive; yields down, gold attractive.

[Smith1776]

The recent gold decline has caused the value of my PP to fall below a leading digit threshold in my retirement account.

[Ugly_Bird]

The recent gold decline has caused the value of my PP to fall below a leading digit threshold in my retirement account.

I think PP should have a small fraction of crypto. It would help when crypto skyrocketing but work as before when crypto will crash.
Added GBTC to my IRA. So far tt helps to compensate for the PP losses.
At this point I treat BTC and GBTC as part of the variable portfolio. But we might be witnessing the necessity of the PP concept change because of the completely new investment options.

[mathjak107]

The recent gold decline has caused the value of my PP to fall below a leading digit threshold in my retirement account.

Yep, we hit a new milestone before I shifted my usual portfolios over to the pp...

Now the old milestone moved up and are still above the milestone ,where as the action in Tlt and Gld now pulled us below the threshold line