% of gold asset in ETF or CEF for rebalancing purposes

Discussion of the Gold portion of the Permanent Portfolio

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Kbg
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Re: % of gold asset in ETF or CEF for rebalancing purposes

Post by Kbg » Sun Jun 23, 2019 5:27 pm

This is an age specific question, but for the younger investor, why would one not load up the ROTH space with equity? (Keep what is likely going to be the largest end amount tax free)
stuper1
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Re: % of gold asset in ETF or CEF for rebalancing purposes

Post by stuper1 » Sun Jun 23, 2019 6:53 pm

Some people use their Roth IRA as a place for their emergency fund, because you can always take your contributions out without penalty.
LittleDinghy
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Re: % of gold asset in ETF or CEF for rebalancing purposes

Post by LittleDinghy » Fri Jun 28, 2019 9:36 am

pmward wrote:
Sun Jun 23, 2019 10:06 am

If it puts you at ease at all, from a technical standpoint there is no real hard resistance in gold until almost $1700. So if the breakout doesn't reverse in quick order here, there's a lot of room for this rally to run before the big institutional shorts will start to try to fade the rally. Buying a breakout is always tough, because breakouts like this either breakout like mad, or they reject and pull back. FWIW, while it is possible gold could reject, I don't think there is a lot of room for it to go down. It's about as safe of a breakout as you can buy, as the potential reward far outweighs the risks. If you are too nervous you could DCA once a week for the next two months or something like that? If we get a runaway breakout you might lose a bit on the whole, but you at least had some of your cash in play instead of standing on the sidelines too scared to do anything. Or you could wait until this coming Friday at the last hour of the trading day to see if we are going to get another weekly close above $1375, and if we do just pile it all in. I would feel reasonably comfortable with 2 weekly closes above that level. That also happens to be the end of month, so that gives some extra confidence as a lot of hedge funds make big moves on Fridays and on the last trading day of the month. Or you could do what flying said and just throw it all in tomorrow. Either way, the PP is set up so you are hedged, even if in the very slim chance gold should not only reject the breakout but have a violent breakdown (once again, I think this is very unlikely since gold has built a solid base over the last 5 years, there just isn't much room to go down, imo).
Thank you pmward once again. I ended up buying 3/4 of the 20% of my GB in AAAU on Monday and the remaining 1/4 in physical from APMEX on Tue. All of it is in my brokerage account. So I purchased pretty much at the most recent peak. Ah well..c'est la vie. At least our nest egg is now fully allocated to the GB. Now to start figuring out how to monitor it.
LittleDinghy
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Re: % of gold asset in ETF or CEF for rebalancing purposes

Post by LittleDinghy » Fri Jun 28, 2019 9:44 am

Kbg wrote:
Sun Jun 23, 2019 5:27 pm
This is an age specific question, but for the younger investor, why would one not load up the ROTH space with equity? (Keep what is likely going to be the largest end amount tax free)
I would like to but we had to use equities in our retirement accounts at our employers because they did not have good treasuries or gold. There was some small cap value that was unfilled which we did fill in one of our roths. The rest of the roth money we used for 25-30 yr treasuries.
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