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Thread: Gold as a replacement for large cash and bond savings

  1. #241
    Join Date
    May 2013
    Posts
    1,491

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    STILL.....the big unanswered question is.....Who can work up the biggest hocker and spit the farthest????...That's what I wanna know.

    Ag guy
    live for today, admit your faults, do the right thing (even if you don't want to) & trust God!
    This life is the training of the soul for the life to come. (accept that we live in a fallen world)
    Whether you know it or not, you are a spiritual eternal being! Ag guy

  2. #242

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    I simply showed you historically that your hypothetical portfolio mix was not the best mix if you took a good with the bad approach.

    Diversification is not about getting the most bang for your buck ( It is hard to argue that a 100% stock weighting would do that) It is about the highest return given the lowest possible volatility and safety of principle. The older you are the more important that becomes.

    One thing I do not like is someone trying to make it that I am saying something that I am clearly not.

    I am also long gold and girls. ( or at least 1 girl at my age)

    To varying degrees, we are all are guilty of thinking or saying others are saying things they are not, though of course we are most sensitive only when it comes to our own own selves being misquoted. To me, you seemed to have a special affinity for aaa corporate bonds, sorry if I was wrong. However, never do I say the "best mix" was the quoted ratio of stocks and gold; rather it was to say it would be better for many if they had replaced the bonds funds so commonly pushed on them with gold. As I have said before, This thread was started in reaction to the very common stock-bond formula many big financial institutions like to recommend, with little if any mention of gold. The "best mix" can very drastically from person to person, and for me personally, it would include investments with small businesses with Christian values (including having disdain for debt) that I know and am involved with directly -- however for obvious reason, I can't suggest the same for many.

    Good to know you are long gold and girls - however maybe it's good to "diversify" - i.e. not just one form of gold or "1 girl". Now, you can take that how you want, for me it does not necessarily mean being unfaithful to one's wife, rather women were created for mans value not just in the singular, daughters are a joy to have, and there is nothing wrong with appreciating the presence of a diversity of fine women, one should have enough love in their lives to share and enjoy the company of many, no matter "safe and business minded" like your corporate bonds, or more volatile and wild than your "1", like silver is to gold.





    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  3. #243

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    Quote Originally Posted by motocat View Post
    I simply showed you historically that your hypothetical portfolio mix was not the best mix if you took a good with the bad approach.

    Diversification is not about getting the most bang for your buck ( It is hard to argue that a 100% stock weighting would do that) It is about the highest return given the lowest possible volatility and safety of principle. The older you are the more important that becomes.

    One thing I do not like is someone trying to make it that I am saying something that I am clearly not.

    I am also long gold and girls. ( or at least 1 girl at my age)

    To varying degrees, we are all are guilty of thinking or saying others are saying things they are not, though of course we are most sensitive only when it comes to our own own selves being misquoted. To me, you seemed to have a special affinity for aaa corporate bonds, sorry if I was wrong. However, never do I say the "best mix" was the quoted ratio of stocks and gold; rather it was to say it would be better for many if they had replaced the bonds funds so commonly pushed on them with gold. As I have said before, This thread was started in reaction to the very common stock-bond formula many big financial institutions like to recommend, with little if any mention of gold. The "best mix" can very drastically from person to person, and for me personally, it would include investments with small businesses with Christian values (including having disdain for debt) that I know and am involved with directly -- however for obvious reason, I can't suggest the same for many.

    Good to know you are long gold and girls - however maybe it's good to "diversify" - i.e. not just one form of gold or "1 girl". Now, you can take that how you want, for me it does not necessarily mean being unfaithful to one's wife, rather women were created for mans value not just in the singular, daughters are a joy to have, and there is nothing wrong with appreciating the presence of a diversity of fine women, one should have enough love in their lives to share and enjoy the company of many, no matter "safe and business minded" like your corporate bonds, or more volatile and wild than your "1", like silver is to gold.







    We are certainly on the same page on many things Motocat, especially our love of women and gold. ( mine diminished more than yours by age and experience respectively)


    Gold, I have always loved for its honesty, but my faith in being too much overweight gold was tested in much of the period from 1980 to 2007 (high to high), and to a much lessor extent 2011 to 2020. (high to high)
    It made me more cautious ( diversified in all assets) than perhaps I should have been. ( although I did see the light enough to start reducing bonds and increase other assets, including PM`s at a fairly opportune time. )

    As far as women, what 'normal' man does not like as many attractive women around them as possible, but from a carnal point of view I found that once pledged it was dishonest, unless one agreed that what is good for the goose is good for the gander.

    I apologize for my single mindedness on frivolous semantics, or numbers, it is just one of my many faults that I alluded to, with another poster.

  4. #244

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    Gold, I have always loved for its honesty, but my faith in being too much overweight gold was tested in much of the period from 1980 to 2007 (high to high), and to a much lessor extent 2011 to 2020. (high to high)

    One strategy that I am sure you are aware of is to re-balance form time to time. So if you want to keep 30% in gold, when gold become more valuable such that your percentage become to hgih, you sell some to get back to that 30%, and then when it looses value, like when it was under $1300 (as recently as 5 years ago), you buy more. Once can find many post here that I have noting times I buy -- most recently it was at under $1850 only in October. While keeping a good core in physical, it helps to have some ETF (or kitco pool) gold to adopt better to this strategy. As such, most recently I have been selling SGOL and also from the kitco gold pool.

    That I'm buying a house at 5 year lows in my area really makes the timing sweet. Good thing I did not go the expert big banker way and load up on treasury bonds while interest rates where low because it was the "safe" thing to do.....pretty much done with bonds now (feel like a gambler quitting while he's ahead) though I understand how trading in them can still work, if you have confidence that the whole fiat-debt system will not collapse (a confidence I do not have though I am more realistic on, the game can go on a long time, while life is short).


    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  5. #245

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    The Edda, my favourite lifeguide, says that Heimdallr ( the homo economicus of that time ) saw the wool on the sheep and gras growth before it grew, meaning he was able to see the opportunities before they became real.

    The point is to be able to assess the evolution of your time and unfortunately wisdom and experience do not grow on the Net.

    Drom 1914 onwards the money value has been in decline, and the increase of physicaloutput of goods and services has never been able to stop that decline. This trend ihas been overshooting all common sense and nobody has ever been able to stop that trend. On the contrary that trend is accelerating.

    It is not only a feature of our capitalistic world, it is also happening in so cammed communist countries. All systems have been forced to promise more wealth to the populations than they produced and the populations their hunger is insaatiable, so in order not to be detituted they MUST indebt themselves, which if this debt is used cor mere unproductive consumption is thrown away money, thus engendering inflation.

    There is not a single paperitem which is " honest" because already only the unit in which they are expressed is melting over time.
    So they cannot be a good investment unless the interest rate is minimum three or four percent over the depreciation of the unit in which they are expressed.

    Gold has been on the rise and will rise because of the unstoppable trend of fiatvalue destruction.

    Golditiki2+++

  6. #246
    Join Date
    Sep 2023
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    1

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    Quote Originally Posted by motocat View Post
    I would like to propose that the people stop looking at gold as just another asset to have some exposure to for "diversity" (I commonly hear keeping 2-10%), and that rather, it become a replacement for your savings in cash and bonds. Of course, keep some of your regions common currency for near term expenses (say 3 months), however the faith that has been placed by supposed financial experts on cash (and related bonds) is misplaced, given it's proven and necessary nature is to keep falling in value over time as trillions more in fiat digits are created. Look to silver and platinum as areas to diversify ones assets in PM bullion. And if you can, even do business directly with financial transactions in gold bullion, to help cement the idea that gold is money -- the king of money -- natural money -- God's money.

    Gold is, has, and will be for the foreseeable the time tested solid core of money. Cash and bonds will just loose value, a fools savings. So now, instead of say 40% in stock, 40% in bonds, 10% in gold, 5% cash, 5% ____ - have 40% stock, 40% gold, 10% silver/platinum, 5% cash, 5% _____. One needs to stick to this plan even when gold is not on a bull run, as it is on the downs when gold is not favored that saving in it can really pay off.
    Interesting perspective, motocat! Shifting the focus from traditional cash and bonds to gold as a core savings asset is indeed a unique approach. Your emphasis on the long-term stability of gold versus the inherent devaluation of fiat currency makes a compelling case. Diversifying into silver and platinum further adds depth to this strategy. It's a thought-provoking suggestion to view gold not just as an investment but as a reliable form of money. Thanks for sharing your insights!

  7. #247

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    Where are we with Palladium and Platinum? One could buy an ounce of each for nearly the same as 1 ounce of gold. Now seems like a good time to diversify never bought either, however, central banks don't have any platinum palladium or silver on their balance sheets so gold may be the best option. It wasnt that way Not sure how liquid an oz of Pd is. Even with sanctions on Russia supplying nearly 40% of Pd the price went down. This push for Green eliminating gas engines or need for catalytic converters in the future is not gonna happen as quickly as they want. Somewhere they are laying off workers due to Pd price collapse. Pd price could go back to more of mean of around 800? Or not gonna happen? The Pd tulip mania is over? I have to pay nearly 5% over spot for sales tax here it doesn't warrant a trip to California to buy something small to save 4.712% but it sucks.

  8. #248

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    Where are we with Palladium and Platinum? One could buy an ounce of each for nearly the same as 1 ounce of gold. Now seems like a good time to diversify never bought either, however, central banks don't have any platinum palladium or silver on their balance sheets so gold may be the best option. It wasnt that way Not sure how liquid an oz of Pd is. Even with sanctions on Russia supplying nearly 40% of Pd the price went down. This push for Green eliminating gas engines or need for catalytic converters in the future is not gonna happen as quickly as they want. Somewhere they are laying off workers due to Pd price collapse. Pd price could go back to more of mean of around 800? Or not gonna happen? The Pd tulip mania is over? I have to pay nearly 5% over spot for sales tax here it doesn't warrant a trip to California to buy something small to save 4.712% but it sucks.

    In my first post to start this thread, I did mention perhaps 10% in other metals, one can consider that as "diversifying" within PM's, however while gold can be seen to replace bonds, the other metals I see more like stock, silver perhaps 50-50, while Palladium buy-sell spread is so high, I do not myself deal with Pd bullion (it is really only for the boutique hobbyist), only use the PALL ETF for trading. If you look around, you can find platinum buy-sell spread less than silver, and I believe it is less with the Kitco PM pool. Neither Pd or platinum bullion are that liquid as compared to gold, many dealers do not buy and sell them.. Future on any metal is uncertain, especially how they do relative to each other (long term, all will go up vs fiat which goes to zero), that's why diversifying may be prudent, especially with Pd and Pt near or at all time lows vs gold.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

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