Gyroscopic Investing

From 1998 to about 3007 I had a very high allocation to gold, around 70%. Since that time, I have been down to around 50% gold due to a diversification into a Swiss franc annuity that, although profitable to some extent, was way less so than if I had just stuck to gold. I've finally gotten the Swiss insurance company to disgorge most of the value of that annuity, and am putting the proceeds back into gold.

As a result, I'll be back up to around 70% gold shortly, using the Gold Star Trust IRA that ochotona has posted about. You can expect a big plunge in the price in the next couple of weeks to punish me!

(Note: all of this is in tax-deferred accounts, so there is no tax consequence of changing the allocation.)

Hi Libertarian666,

If I may ask, what is your strategy with the other 30% of your portfolio? With 70% gold, my guess is that you don't have a lot of faith in stocks and bonds? Just curious about the portfolio allocation.

WhiteElephant wrote:Hi Libertarian666,

If I may ask, what is your strategy with the other 30% of your portfolio? With 70% gold, my guess is that you don't have a lot of faith in stocks and bonds? Just curious about the portfolio allocation.

Mostly another Swiss Franc annuity, which I'll be getting rid of shortly also. I'm tired of the foreign account reporting requirements.

The rest is about 3 years expenses in cash.

No stocks or bonds.

If there is another big stock market crash, I may reallocate some money to that asset class. Right now I think stocks (and even more so, bonds) are seriously overpriced.

Hi Libertarian666,

With a large Gold allocation such as yours, I thought this site may be useful.

https://www.youtube.com/user/belangp/videos

No exposure to Silver?

Hal


PS: And one more on some history

https://www.youtube.com/watch?v=ml2U9_Zi2QI

I like that belangp assortment, too. I was listening the other day.

Silver: if I remember right, tech got burned on it, and is in no hurry to return to silver.

dualstow wrote:I like that belangp assortment, too. I was listening the other day.

Silver: if I remember right, tech got burned on it, and is in no hurry to return to silver.

I have no great disdain for silver, other than its ridiculous volatility. In fact, I have held CEF for quite awhile but dumped it when the Sprott takeover looked like it was going through (which it did). I don't like Sprott's methods, and am working on simplifying my tax reporting, which CEF makes even more annoying than it would be otherwise.

Libertarian666 wrote:From 1998 to about 3007 I had a very high allocation to gold, around 70%. Since that time, I have been down to around 50% gold due to a diversification into a Swiss franc annuity that, although profitable to some extent, was way less so than if I had just stuck to gold. I've finally gotten the Swiss insurance company to disgorge most of the value of that annuity, and am putting the proceeds back into gold.

As a result, I'll be back up to around 70% gold shortly, using the Gold Star Trust IRA that ochotona has posted about. You can expect a big plunge in the price in the next couple of weeks to punish me!

I'm all in, so of course the price is down from where I bought yesterday morning. This is probably just the beginning of a major drop, so get your dry powder ready!

Libertarian666 wrote:

Libertarian666 wrote:From 1998 to about 3007 I had a very high allocation to gold, around 70%. Since that time, I have been down to around 50% gold due to a diversification into a Swiss franc annuity that, although profitable to some extent, was way less so than if I had just stuck to gold. I've finally gotten the Swiss insurance company to disgorge most of the value of that annuity, and am putting the proceeds back into gold.

As a result, I'll be back up to around 70% gold shortly, using the Gold Star Trust IRA that ochotona has posted about. You can expect a big plunge in the price in the next couple of weeks to punish me!

I'm all in, so of course the price is down from where I bought yesterday morning. This is probably just the beginning of a major drop, so get your dry powder ready!

Glad to see that it happens to nearly everyone...