What's up with GTU today?

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
D

What's up with GTU today?

Post by D »

Right now

GTU 73.55 -1.40 (-1.87%)   1.22B
GLD 184.42 +4.47 (2.48%)   78.01B
User avatar
MediumTex
Administrator
Administrator
Posts: 9096
Joined: Sun Apr 25, 2010 11:47 pm
Contact:

Re: What's up with GTU today?

Post by MediumTex »

Maybe a big holder moving out to bank the large premium to NAV, or maybe the fund is going to issue more shares.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
steve
Executive Member
Executive Member
Posts: 266
Joined: Mon Jul 26, 2010 2:06 pm

Re: What's up with GTU today?

Post by steve »

It seems that there are more sellers then buyers today. The premium fell today to 5.29% on Friday it was about 9%. I think intraday last Fri it was as high as 11% for a very short while.

I was hoping to rebalance by selling some GTU today with the high premium, the market must have know that lol
Last edited by steve on Mon Aug 22, 2011 1:45 pm, edited 1 time in total.
User avatar
MediumTex
Administrator
Administrator
Posts: 9096
Joined: Sun Apr 25, 2010 11:47 pm
Contact:

Re: What's up with GTU today?

Post by MediumTex »

steve wrote: It seems that there are more sellers then buyers today. The premium fell today to 5.29% on Friday it was about 9%. I think intraday last Fri it was as high as 11% for a very short while.

I was hoping to rebalance by selling some GTU today with the high premium, the market must have know that lol
5.29% is still a very juicy premium.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
steve
Executive Member
Executive Member
Posts: 266
Joined: Mon Jul 26, 2010 2:06 pm

Re: What's up with GTU today?

Post by steve »

I was sort of getting enticed to rebalance a little early about 32% instead of 35% because of GTU high premium that was around 9% and yes 5.29% is still a very juicy premium but not as attractive as 9%. Tommorow is another day and the premium can drop to zero  but the enticement of 5% is not as great as 9%. Maybe the premium will go back up  and I will be enticed to rebalance or if it drops I will still rebalance at the 35% band. I like to feel that I can wait and not be desperate to sell.
User avatar
l82start
Global Moderator
Global Moderator
Posts: 1291
Joined: Sun Apr 25, 2010 9:51 pm

Re: What's up with GTU today?

Post by l82start »

i am closing in on having the same debate with my self, my gold is at around 30% right now, i bought my GTU  back when there was a negative premium  and all the "good buy on GTU" threads popped up.. 
30% is probably a bit low for a rebalanced, so for now i am crossing my fingers and hoping the premiums and my gold % peak at the same time.  i will be facing the same incitement if it hits 9% when i am at 32% or so... 
-Government 2020+ - a BANANA REPUBLIC - if you can keep it

-Belief is the death of intelligence. As soon as one believes a doctrine of any sort, or assumes certitude, one stops thinking about that aspect of existence
steve
Executive Member
Executive Member
Posts: 266
Joined: Mon Jul 26, 2010 2:06 pm

Re: What's up with GTU today?

Post by steve »

Conviction to stick with a plan
When I decided to follow the PP my plan was to rebalance between 33 and 35 percent. My thinking was the 35 band was Ideal but if I were getting anxious the 33 band was a compromise.  I also want to be somewhat flexible to take advantage of opportunities for example a high premium on a GTU sale. I agreed to make a little further comprise with myself and rebalance at 32 if the premium was 8% or better. At some point you have to stand firm.
Sometimes I have missed opportunities by not acting fast enough but I like to take my time and make sure what I do is right for me and in the long run this has worked out for me very well.
To elaborate further the only real reasons for getting anxious is wanting to do other things other then having to watch my portfolio.
My logic is the following:
I rebalance a little early and get a small bonus on GTU premium and buy the declining asset slightly higher and the end result is good.
I rebalance at 35% without bonus on premium and buy declining asset at a lower price and the end result is good.
The market reverses and my 35% rebalance band is not hit and I do not rebalance and the end result is good.
Last edited by steve on Tue Aug 23, 2011 8:31 am, edited 1 time in total.
Post Reply