Gyroscopic Investing

frugal wrote: https://distrify.com/films/2464

I've seen this documentary about FIAT MONEY.

Can you please comment FIAT money CRASH and what shall we do?

25% in GOLD as HBPP is enough?

I don't even have to watch that video to know that it's hyperbolic doom porn.   Yes, our monetary system is fragile. But all monetary systems are fragile. A sudden crash is extremely unlikely, but if it does happen, there will be billions of humans with a vested interest in picking up the pieces and rebuilding it mighty quick. It's not like we'll revert to warring tribes or something.

I think 25% gold will be plenty. You do have some in physical bullion, right? 

Pointedstick wrote:

frugal wrote: https://distrify.com/films/2464

I've seen this documentary about FIAT MONEY.

Can you please comment FIAT money CRASH and what shall we do?

25% in GOLD as HBPP is enough?

I don't even have to watch that video to know that it's hyperbolic doom porn.   Yes, our monetary system is fragile. But all monetary systems are fragile. A sudden crash is extremely unlikely, but if it does happen, there will be billions of humans with a vested interest in picking up the pieces and rebuilding it mighty quick. It's not like we'll revert to warring tribes or something.

I think 25% gold will be plenty. You do have some in physical bullion, right? 

PS,

because of expenses and difficult to sell if necessary, I only have ETF.

If I need to rebalance it I will buy physic.

Hug

frugal wrote: PS,

because of expenses and difficult to sell if necessary, I only have ETF.

If I need to rebalance it I will buy physic.

What expenses and difficulties are you referring to? The buy/sell spreads? I don't know about Portugal but in the USA selling is easy. There are coin and bullion dealers everywhere and all the major websites will accept any gold you want to sell them. It's not as easy as an ETF of course, but if you're really worried about the collapse of the monetary system, then I'd say it's worth it, wouldn't you agree? 

[quote=Kenneth Parsons, aka Johnny silver Bear, 2004]
During the first half of the 20th century, each of four world leaders did the exact same thing within ninety days of their ascension to power. Each made it illegal for the citizens of their respective countries to own gold. Those leaders were: Mao, Stalin, Hitler, and Franklin D. Roosevelt.
[/quote]

I never liked FDR, for this and many other reasons.  Historians have been too kind to him by turning a blind eye to the long-term damage that he did to this country. 

Slotine wrote: Gold's 'intrinsic' value is nothing more than the reflection of the fact that somewhere out there is a government that would accept it as legal tender.  Like all commodities however, its local market value is that minus the cost of carry to its final destination.

Nope.  "Intrinsic value" means that something has value in and of itself.  In the case of gold, its intrinsic value is its usefulness in jewelry, the medical field, electronics, and so on.  In other words, if everyone in the world stopped recognizing gold's monetary value, it would still be useful in other ways. 

Fiat money has no intrinsic value because it has no use other than as a monetary instrument (unless you consider its potential use as toilet paper or kindling an "intrinsic value"  )

rocketdog wrote: Fiat money has no intrinsic value because it has no use other than as a monetary instrument (unless you consider its potential use as toilet paper or kindling an "intrinsic value"  )

Pointedstick wrote:

rocketdog wrote: Fiat money has no intrinsic value because it has no use other than as a monetary instrument (unless you consider its potential use as toilet paper or kindling an "intrinsic value"  )

And there you have it.

I wouldn't factor in a government's willingness to accept gold as givng gold its monetary value.  Plenty of people will accept gold as payment regardless of whether or not any gov't does.  That's why gold has been so useful throughout history as a standardized medium of exchange back before there even were governments.

Slotine wrote: I made the distinction because right now, officially at least, no one recognizes gold's monetary value.

Not quite accurate.

JPM Chase announced they accept gold as collateral for margin loans about 2 years ago.

The Fed recognizes gold as a tier 1 asset (equivalent to a 1st world currency or bond).

The IMF / BIS in the 2012 Basel III agreement proposed to value gold as a tier 1 asset (instead of the current tier 3) starting January.  Reports are unclear that I've seen, but it appears the proposal was not accepted, so gold is still not tier 1, but it is valued at 85% now instead of previous 50%.

Pointedstick wrote:

frugal wrote: PS,

because of expenses and difficult to sell if necessary, I only have ETF.

If I need to rebalance it I will buy physic.

What expenses and difficulties are you referring to? The buy/sell spreads? I don't know about Portugal but in the USA selling is easy. There are coin and bullion dealers everywhere and all the major websites will accept any gold you want to sell them. It's not as easy as an ETF of course, but if you're really worried about the collapse of the monetary system, then I'd say it's worth it, wouldn't you agree? 

I'll re-check it!

TKS