If you're laser-focused on hyperinlation then you'll be fine if it happens. What do you mean take profits? You mean sell your gold?Pointedstick wrote:The flip side to this question is of course: "How do you know when to sell and take profits if you're laser-focused on the possibility of a hyperinflationary price explosion?"Kshartle wrote: Here's the thing about hyperinflation guys........
If Gold goes to 1 million an ounce, it will first hit 2k, 3k, 4k.....
The move from 2k to 4k is the same percentage as 500k to 1 million.
Will you know the warning signs and prevent yourself from selling at 2k, 3k, 4k, 10k?
If the hyperinflationary gold price explosion never happens in our lifetimes, then we could lose a lot of money never taking profits when gold rises. It is, after all, a highly volatile asset whose price movements we can harvest for profits just like stocks and bonds.
I think you just buy stuff you want and go on with life as best you can. If gold shoots to 1 million an ounce because of hyperinflation you'll be using your gold to buy stuff....automatically taking profits. Maybe it will fall down some in normal dollar terms but so what? It'll be obvious that you can scoop up a lot of stuff you actually want with your gold. Buying it locks in your gain.
I mean, who really wants a lump of metal....I really want other stuff that enhances my life.
Agreed on the last part, but you're kind of making my point that the PP won't protect you during hyperinflation. You'll sell out on the way up. That's why I say this strategy is not designed to protect you for an event like that. Even a 1/3 stocks, 1/3 gold, 1/3 ten-year would be safer if you're going to adhere strictly to in and not take into consideration the current economic situation. I think that's a reasonable assesment.