Gyroscopic Investing

Hal wrote: ↑Thu Nov 26, 2020 1:07 am Now the wisdom of HB's advice about keeping some assets overseas has become apparent. Australia shut its border, even to its own citizens, for months and still hasn't allowed everyone to return. How would well would you survive if you went on international holidays then found yourself locked out for six months?

How many Aussies are they not allowing in? The government website says they can come back, but they have to quarantine for 14 days.

Kriegsspiel wrote: ↑Thu Nov 26, 2020 6:21 am I still had some ETF back when I answered this poll. I only have bullion now.

Same. 100% bullion coins: eagles, krugerrands, philharmonics, leaves( ), and a britannia.
EDIT: and Australian kangaroos/nuggets

Kriegsspiel wrote: ↑Thu Nov 26, 2020 6:25 am How many Aussies are they not allowing in? The government website says they can come back, but they have to quarantine for 14 days.

Ah, yes. but how many quarantine places are there

This is a Federal government decision not to make the additional quarantine places available. The reason it isn’t doing more is obvious. It wants to force the states to make more flexible quarantine options available so that it can commence permitting students and possibly tourists back in, and it cannot do that without State agreement. It also hasn’t approached the States to ask about their scope to take back returning Australian residents from that State for quarantine. A state being asked to consider expanding quarantine for tourists or students may well give one answer, and a completely different answer when asked to arrange accommodation for some of its own returning residents with relatives in the State. The Federal Government doesn’t want to hear that the States will do something for their returning residents, that they don’t want to do for foreign students and possibly tourists. The Federal Government, and Prime Minister Scott Morrison, is holding offshore Australians to ransom.

https://www.macrobusiness.com.au/2020/1 ... d-aussies/

Highly recommend everyone hold some assets offshore in case of an emergency as HB suggested.

I basically have two portfolios:

1. PP consisting of all ETFs
2. Cash + physical gold of varying percentages

As far as I'm concerned the cash and physical gold create a hedged position. Paper and metal are a nice offsetting combination. I selected 0 - 19% as that seems to be most representative to me. However, my PP allocation itself is 100% ETFs. I consider the cash and bullion to be a separate portfolio entirely. I don't ever plan on rebalancing out of physical.

Most of my gold is in IAU. I do have a small percentage that's physical along with modest pile of silver that I bought speculatively a couple of years ago.

Ad Orientem wrote: ↑Thu Nov 26, 2020 4:38 pm Most of my gold is in IAU. I do have a small percentage that's physical along with modest pile of silver that I bought speculatively a couple of years ago.

Good stuff. I do think that silver is more "useful" in physical form than digital form. Since silver is less valuable it would theoretically be better for everyday barter in a SHTF scenario than gold. But in the ETF space there's less reason to have any preference for it.

Smith1776 wrote: ↑Thu Nov 26, 2020 4:40 pm

Ad Orientem wrote: ↑Thu Nov 26, 2020 4:38 pm Most of my gold is in IAU. I do have a small percentage that's physical along with modest pile of silver that I bought speculatively a couple of years ago.

Good stuff. I do think that silver is more "useful" in physical form than digital form. Since silver is less valuable it would theoretically be better for everyday barter in a SHTF scenario than gold. But in the ETF space there's less reason to have any preference for it.

The argument for using SLV over physical silver is liquidity, logistics, and storage. I have a fair pile and had to rent a much larger safe deposit box for it. If I get anymore, I think I would opt for SLV for the sake of convenience.

Ad Orientem wrote: ↑Thu Nov 26, 2020 4:46 pm
The argument for using SLV over physical silver is liquidity, logistics, and storage. I have a fair pile and had to rent a much larger safe deposit box for it. If I get anymore, I think I would opt for SLV for the sake of convenience.

I meant preference for SLV over GLD, not SLV over physical silver. However, your point is well taken.

For new money into gold, right now I'm not sure ETF's might make more sense considering the high markup over spot price that most dealers are charging for bullion. Lock in gains (or losses) with ETF's then convert to bullion when markups come down..............assuming they ever will.

Lonestar wrote: ↑Fri Nov 27, 2020 2:45 pm For new money into gold, right now I'm not sure ETF's might make more sense considering the high markup over spot price that most dealers are charging for bullion. Lock in gains (or losses) with ETF's then convert to bullion when markups come down..............assuming they ever will.

Such a conversion has issues with taxability.

Xan wrote: ↑Fri Nov 27, 2020 3:32 pm

Lonestar wrote: ↑Fri Nov 27, 2020 2:45 pm For new money into gold, right now I'm not sure ETF's might make more sense considering the high markup over spot price that most dealers are charging for bullion. Lock in gains (or losses) with ETF's then convert to bullion when markups come down..............assuming they ever will.

Such a conversion has issues with taxability.

All the more reason to get your taxable money into real Gold as quickly as possible. You can always lose the gold in an unfortunate boating accident or accidentally forget to record your sale of it on your taxes.

Hard to do that with an ETF.

Tread carefully friend. The IRS is not known for their sense of humor.

Ad Orientem wrote: ↑Fri Nov 27, 2020 3:51 pm Tread carefully friend. The IRS is not known for their sense of humor.

Ohhh yes AdO of course i was kidding.

All kidding aside, having a bunch of gold coins hidden at the time of marriage is better than a prenup. Bonus points if you can quietly accumulate and hide them during marriage too so you can pay for life after marriage (if she leaves you).

The communists have been proposing a wealth tax for some time. Of course you should happily pay it as a social duty to your fellow man but......if you are an antisocial deplorable, gold coins will be hard for them to tax if they're hidden at home.

So many advantages to physical gold at home or maybe some abroad (I can't think of many safe places though). The liquidity and miniscule lower spreads of paper bets are overrated advantages I think. Precisely when you actually need the gold you're almost certain to not be able to obtain it.

Get physical guys. Start with 1 small coin. Buy it for yourself for xmas.

MangoMan wrote: ↑Sat Nov 28, 2020 10:28 am

SomeDude wrote: ↑Sat Nov 28, 2020 9:49 am
All kidding aside, having a bunch of gold coins hidden at the time of marriage is better than a prenup. Bonus points if you can quietly accumulate and hide them during marriage too so you can pay for life after marriage (if when she leaves you).

Fixed that for you. This is such good advice for younger unmarried guys, I can't agree enough. Ask me how I know....

How do you know? I'd go so far as to say if you're not married but think you might someday.....participate in your 401k match and put ALL rest in gold coins and NEVER reveal it until you retire, if then. You could just quietly sell one every month and tell her the money is coming from some great investments you were smart enough to make.

MangoMan wrote: ↑Sun Nov 29, 2020 8:02 am

SomeDude wrote: ↑Sat Nov 28, 2020 11:58 am

MangoMan wrote: ↑Sat Nov 28, 2020 10:28 am

SomeDude wrote: ↑Sat Nov 28, 2020 9:49 am
All kidding aside, having a bunch of gold coins hidden at the time of marriage is better than a prenup. Bonus points if you can quietly accumulate and hide them during marriage too so you can pay for life after marriage (if when she leaves you).

Fixed that for you. This is such good advice for younger unmarried guys, I can't agree enough. Ask me how I know....

How do you know? I'd go so far as to say if you're not married but think you might someday.....participate in your 401k match and put ALL rest in gold coins and NEVER reveal it until you retire, if then. You could just quietly sell one every month and tell her the money is coming from some great investments you were smart enough to make.

This has been discussed here before, but let me put it to you this way:
If you knew that a certain investment opportunity had only a 30% chance of profitability and if it didn't pan out you would lose at least half of your original investment plus create all kinds of collateral damage, would you invest your life savings in that even if the profit was potentially great? As PPers, that type of investment doesn't fit with our philosophy, yet that's essentially what men do when they enter into a legal contract with another person and the government, called marriage.

And I know because I have had the displeasure of personally dealing with this about a decade ago.

Me too, although it was 25 years ago.
My current marriage is one of the relatively rare winners.

Libertarian666 wrote: ↑Sun Nov 29, 2020 10:28 am

MangoMan wrote: ↑Sun Nov 29, 2020 8:02 am

SomeDude wrote: ↑Sat Nov 28, 2020 11:58 am

MangoMan wrote: ↑Sat Nov 28, 2020 10:28 am

SomeDude wrote: ↑Sat Nov 28, 2020 9:49 am
All kidding aside, having a bunch of gold coins hidden at the time of marriage is better than a prenup. Bonus points if you can quietly accumulate and hide them during marriage too so you can pay for life after marriage (if when she leaves you).

Fixed that for you. This is such good advice for younger unmarried guys, I can't agree enough. Ask me how I know....

How do you know? I'd go so far as to say if you're not married but think you might someday.....participate in your 401k match and put ALL rest in gold coins and NEVER reveal it until you retire, if then. You could just quietly sell one every month and tell her the money is coming from some great investments you were smart enough to make.

This has been discussed here before, but let me put it to you this way:
If you knew that a certain investment opportunity had only a 30% chance of profitability and if it didn't pan out you would lose at least half of your original investment plus create all kinds of collateral damage, would you invest your life savings in that even if the profit was potentially great? As PPers, that type of investment doesn't fit with our philosophy, yet that's essentially what men do when they enter into a legal contract with another person and the government, called marriage.

And I know because I have had the displeasure of personally dealing with this about a decade ago.

Me too, although it was 25 years ago.
My current marriage is one of the relatively rare winners.

Hey, we found another thing in common! 26 years happy here.

7.5 months.

I'm still in the accumulation phase

Cortopassi wrote: ↑Sun Nov 29, 2020 10:53 am

Libertarian666 wrote: ↑Sun Nov 29, 2020 10:28 am

MangoMan wrote: ↑Sun Nov 29, 2020 8:02 am

SomeDude wrote: ↑Sat Nov 28, 2020 11:58 am

MangoMan wrote: ↑Sat Nov 28, 2020 10:28 am

SomeDude wrote: ↑Sat Nov 28, 2020 9:49 am
All kidding aside, having a bunch of gold coins hidden at the time of marriage is better than a prenup. Bonus points if you can quietly accumulate and hide them during marriage too so you can pay for life after marriage (if when she leaves you).

Fixed that for you. This is such good advice for younger unmarried guys, I can't agree enough. Ask me how I know....

How do you know? I'd go so far as to say if you're not married but think you might someday.....participate in your 401k match and put ALL rest in gold coins and NEVER reveal it until you retire, if then. You could just quietly sell one every month and tell her the money is coming from some great investments you were smart enough to make.

This has been discussed here before, but let me put it to you this way:
If you knew that a certain investment opportunity had only a 30% chance of profitability and if it didn't pan out you would lose at least half of your original investment plus create all kinds of collateral damage, would you invest your life savings in that even if the profit was potentially great? As PPers, that type of investment doesn't fit with our philosophy, yet that's essentially what men do when they enter into a legal contract with another person and the government, called marriage.

And I know because I have had the displeasure of personally dealing with this about a decade ago.

Me too, although it was 25 years ago.
My current marriage is one of the relatively rare winners.

Hey, we found another thing in common! 26 years happy here.

Been following this guy for investment thoughts for ages.
His post is about Gold/Silver/Bitcoin/Marriage/Corona Virus/Economics/Health (take your pick )
Feel a bit sorry for him as he obtained enough to retire then got cancer. Doubt if I could remain so positive in his situation......
https://www.youtube.com/watch?v=0B-fvfL ... LA&index=2

Anyone considering buying physical gold for the first ruins but having a hard time pulling the trigger?

SomeDude wrote: ↑Sun Nov 29, 2020 9:34 pm Anyone considering buying physical gold for the first ruins but having a hard time pulling the trigger?

The first... ruins? Guessing this was an autocorrect for "time"?

Premiums seem to be high right now (5%?) which makes it hard to pull that trigger.

Xan wrote: ↑Sun Nov 29, 2020 9:35 pm

SomeDude wrote: ↑Sun Nov 29, 2020 9:34 pm Anyone considering buying physical gold for the first ruins but having a hard time pulling the trigger?

The first... ruins? Guessing this was an autocorrect for "time"?

Premiums seem to be high right now (5%?) which makes it hard to pull that trigger.

Time.....hopefully not ruinous.

I'd call it "autoincorrect"

A 1oz gold bar at monument metals is 1.5% over spot.

Some of my xmas money will be going to physical. Thank you, Santa!

k9 wrote: ↑Mon Mar 31, 2014 4:34 am
100% physical here. To each his own, but I don't really get the "I'm 100% ETF because that's more convenient". You are not supposed to ever sell your whole gold portion (except in armaggedon scenarios). So you can hold a stable foundation (say, 1/3rd of it you will probably never, ever sell) as physical gold and keep the potentially-rebalanced 2/3 in ETFs.

Here is a good opposite argument for only physical and NO paper!

Depends upon how much you're drawing, or not.

Accumulators (0% SWR) 22% physical (unlikely to be traded), 3% fund/ETF i.e. yearly granularity lowest low historic since 1930's was 88%.

2% SWR 16% physical
3% SWR 8% physical