Gyroscopic Investing

No doubt the performance helps! However, if I had a longer history with the PP and saw +4, +6, +7, etc years mainly, even if/when a down year comes around I think I'd be less nervous.

Closing in on $1300. Maybe we'll go through it this time?

Libertarian666 wrote:Closing in on $1300. Maybe we'll go through it this time?

My prediction is yes. Gold is going much higher. My belief is that the winds of austerity have passed and now gold will come back in favor.

With bonds yielding nothing gold should become much more attractive. Gold will be the new "bonds" over the next several years, IMO.

Eventually, sure!

$1300 bell rung not long ago. A bit below, but what a comeback from a couple weeks ago!

And now at least, solidly above $1300! PP up 10.15% for me this year. Pinch me.

I just can't imagine gold not doing well with bond yields so low. The gold haters always use "cost of carry" and "gold yields nothing" as excuses for why you shouldn't invest in gold, yet apparently they are more than happy to invest at negative or next to zero rates on bonds.

It seems like the smart money (I HATE that term, but it's applicable here) like Soros, Icahn, etc all seem to be hedging with gold now.

Is gold the new T-bond?

clacy wrote:I just can't imagine gold not doing well with bond yields so low.

Can you expand on your thinking, Clacy? Should gold really do well just because bond prices are so high? I am not saying you are wrong but I'd like to understand why this might be true. Thanks.

barrett wrote:
Can you expand on your thinking, Clacy? Should gold really do well just because bond prices are so high? I am not saying you are wrong but I'd like to understand why this might be true. Thanks.

Here is a hodge-podge of my (amateur hour) global-macro thoughts:

-With yields at or near negative territory, we're at the upper bounds of bond prices. Potential upside has been reduced, which means funds/banks/CB's/rich dudes like Sorors et al will look for a better safe haven trade.... ie Gold

-Austerity was tried in several places, and that mood has passed. Fiscal austerity is not good for your long term government career in most democracies, so printing/QE is the natural way out. That will be with us going forward for several years, IMO.

-Real cost of carry has been reduced/eliminated now that bonds yield little or negative

-Most countries have declared war on cash with negative rates/ZIRP. The next step will be capital controls and tax increases (globally), so money is and will continue to look for safe harbors like RE and Gold

Bye bye birdie

clacy wrote:

barrett wrote: Most countries have declared war on cash with negative rates/ZIRP. The next step will be capital controls and tax increases (globally), so money is and will continue to look for safe harbors like RE and Gold

Ah, damn! Real estate too? So I shouldn't sell my NYC apartment? Seriously, thanks for that. Good food for thought.

C'mon Budd, we've gone from almost $1200 to over $1300 in about 2 weeks. A pullback is expected, and the shooting in the UK with talk of postponing the vote did not help.

Cortopassi wrote:C'mon Budd, we've gone from almost $1200 to over $1300 in about 2 weeks. A pullback is expected, and the shooting in the UK with talk of postponing the vote did not help.

Damn! Just saw the UK news.
Not complaining at all, just stating the facts.

I do have to say, though, that after all this time, it is still gold, going up or going down, that causes the biggest emotional reaction in me. Still working on kicking that...

Cortopassi wrote:I do have to say, though, that after all this time, it is still gold, going up or going down, that causes the biggest emotional reaction in me. Still working on kicking that...

Me too...seems like a good reason to own it.

My portfolio is up a bit over 14% YTD. I don't see any reason to be upset at a spike and retracement in gold, when that leaves it up over $200 YTD.

buddtholomew wrote:Bye bye birdie

Note to self: Stop reading buddtholomew's posts. I thought something really bad must have happened only to discover gold dropped about 1%. Big deal. Stocks and bonds do that all the time.

curlew wrote:

buddtholomew wrote:Bye bye birdie

Note to self: Stop reading buddtholomew's posts. I thought something really bad must have happened only to discover gold dropped about 1%. Big deal. Stocks and bonds do that all the time.

Peak to trough was around 2.6%.
.026 * 750,000 = 20,000 USD

Feel free to stop reading my posts. I don't mind.
By the way, I'm ecstatic about PP performance YTD.

750k in gold, my hat is off to you....someday....

Cortopassi wrote:750k in gold, my hat is off to you....someday....

Its all relative so we should really only talk percentages.
Like cortopassi, I have a visceral reaction to gold, whether it is up or down.
If it's up, I fear it will fall soon and if it is down, i fear it will fall further.

Gold seems to be up like US$80/oz tonight. Kitco has crashed.
Brexit vote is 60% counted...

dualstow wrote:Gold seems to be up like US$80/oz tonight. Kitco has crashed.
Brexit vote is 60% counted...

Kitco has $1356, up $100.

Wow, man, wow. I've been watching Sky News. Really interesting watching the voting.

And of course, seeing gold shoot up. A hair over $1360 2 minutes ago, dropped to $1340 in a split second.

Stock futures down 700 right now!

Love the PP right now. Can't wait till the open to hear the screaming and I'll be sitting back.

Looks like Kitco has crashed. Here's another site to get live quotes: http://goldprice.org/

Drewskers wrote:Looks like Kitco has crashed. Here's another site to get live quotes: http://goldprice.org/

Kitco is back up as of a few minutes ago.