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Discussion of the Gold portion of the Permanent Portfolio

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Clive

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Post by Clive »

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Last edited by Clive on Sat Jan 07, 2012 7:16 pm, edited 1 time in total.
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Lone Wolf
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Re: Gold $1400

Post by Lone Wolf »

Clive wrote: This boards posting rate also has correlated to the price of gold over the last year http://gyroscopicinvesting.com/forum/in ... tion=stats with posts and gold both peaking in August 2011
That's awesome.  It really does stand to reason that it's much more "fun" to talk about one's investment strategy when it's doing really well (and everyone else's is doing lousy.)

One confounding factor is that gold tends to do well when "a lot of history is happening", so to speak, which might lead to more forum discussion.

Cool observation.
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Re: Gold $1400

Post by Reub »

Happy Holidays, Clive!

Your post brings up the question of how the HBPP has done in periods when gold has been either down or stable. Do you have those numbers?
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Ad Orientem
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Re: Gold $1400

Post by Ad Orientem »

Clive wrote: This boards posting rate also has correlated to the price of gold over the last year http://gyroscopicinvesting.com/forum/in ... tion=stats with posts and gold both peaking in August 2011

The recent posting rate trend is indicating gold $1400 i.e. falling back to last February/March gold price levels
That makes at least as much sense as all the theories being spouted by the talking heads on CNBC.
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stone
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Re: Gold $1400

Post by stone »

I'm still thinking that the gold price manouvers might make sense if you imagine that a great effort is being made by the Chinese central bank and such big buyers to get lots of tonnage. If the Peoples Bank of China has $3T to burn and the entire global stock of gold is $5T at current prices, then it is possible to see how hard it is for them to convert much of their USD into gold holdings. Gold has to be shaken out of the market even if that means occassionally dumping when liquidity is low and the market is fragile so as to allow buying when buying won't push up the price too much.
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Re: Gold $1400

Post by Bongleur »

>A lower risk alternative IMO might be to weight 25% USD DM, 10% gold and split the rest 50-50 between domestic currency 5 year T ladder and 5 year Inflation Bond ladder.
>

DM ???  Deutschmarks ???
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Lone Wolf
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Re: Gold $1400

Post by Lone Wolf »

Bongleur wrote: DM ???  Deutschmarks ???
I believe that Clive is referring to Decision Moose, a popular (but opaque) investment strategy that involves investing in a single asset.  Decision Moose sends out a single indicator of which asset to own and goes "all in" on this asset.
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