Another reason for owning at least some bullion?

Discussion of the Gold portion of the Permanent Portfolio

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6 Iron
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Another reason for owning at least some bullion?

Post by 6 Iron » Sun Aug 22, 2010 2:23 pm

There was an interesting discussion on the Boglehead site regarding the following article from William Bernstein, regarding the permanent portfolio (hat tip to petrico):

http://www.efficientfrontier.com/ef/0adhoc/harry.htm

Dr. Bernstein made a strong, and I think valid point regarding the inflow of money into PRPFX now, as opposed to 10 years ago, and believed that when equities re-enter a secular bull market, that there will be an exodus of performance chasing from PRPFX. While it is not a herculean task, bullion requires more effort to sell than a few keystrokes on a brokerage page for an ETF. In addition to the other benefits of owning gold bullion in a PP as outlined by HB, this inertia to change may also be helpful in avoiding the performance-chasing that he is speaking of and warning us about.
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