GDX or GLD in VP?
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- buddtholomew
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GDX or GLD in VP?
I have a small allocation to GDX that is currently down approximately 25%. I am debating whether to sell GLD in the VP (+.39% since last purchase) and allocate the proceeds to GDX. Thoughts?
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: GDX or GLD in VP?
Sell 25% of your GLD and buy GDX. If GDX drops another 25%, you can do it again.buddtholomew wrote: I have a small allocation to GDX that is currently down approximately 25%. I am debating whether to sell GLD in the VP (+.39% since last purchase) and allocate the proceeds to GDX. Thoughts?
In other words, decide on some rebalancing bands.
You might consider selling all of the gold and then using the cash from the transaction to employ a strategy similar to that above (except with cash instead of gold).
Last edited by AdamA on Fri May 17, 2013 10:01 pm, edited 1 time in total.
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Pascal
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- buddtholomew
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Re: GDX or GLD in VP?
Yes, that makes a lot of sense. Thanks AdamA.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: GDX or GLD in VP?
Take it for what it's worth, though. I don't have the best VP track record in the world. My experience, though, it's easier to ease in and out of positions like this than to be drastic.buddtholomew wrote: Yes, that makes a lot of sense. Thanks AdamA.
Hopefully others will offer some input too.

"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
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- buddtholomew
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Re: GDX or GLD in VP?
I ended up selling the entire GLD position on Friday and investing 100% in GDX. I will re-balance accordingly at 35% bands.AdamA wrote:Take it for what it's worth, though. I don't have the best VP track record in the world. My experience, though, it's easier to ease in and out of positions like this than to be drastic.buddtholomew wrote: Yes, that makes a lot of sense. Thanks AdamA.
Hopefully others will offer some input too.![]()
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
- buddtholomew
- Executive Member
- Posts: 2464
- Joined: Fri May 21, 2010 4:16 pm
Re: GDX or GLD in VP?
The miners sure are volatile. What exactly is driving this recent rally in gold miners and precious metals? Doesn't the possibility of fed tightening and rising interest rates negatively impact the future prospects for these asset classes?
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.