Gyroscopic Investing

sophie wrote:   Rebalancing out of gold doesn't happen that often, and it really wasn't at all difficult to arrange the sale online when I did the tax loss harvest. 

I'm still not looking forward to it, and maybe I'll just end up passing the gold on to my wife or other relatives. But I agree: how often would we have to do it?

I think Craigr said he rebalanced out of gold three times during this golden decade that we just had -- and I really hope I got that right because I've repeated it so many times. Let's say someone had to do it 5 or 6 times during the the full ten or eleven years that gold had that great streak. That's really not too much trouble, even for people like me who get butterflies when they have to transport the stuff.

The hardest part is actually holding gold through three rebalance events, trusting the pp to do its thing and not saying, "Gold can't go any higher. I'm just going to sell all of it and buy stocks and bonds." Even though that would have been lucky at 1800-1900 per oz, it would have been foolish during the beginning or middle of that long, unpredictable streak.

A PP started in 1972 would have rebalanced out of gold 7 times, and 4 of them took place during the 1970's.  Maybe CraigR can pipe in to tell us more...Craig???

The problem of hanging onto gold at "impossibly" high prices...sounds familiar!  People are itching to get out of bonds because "they can't go any higher", but just when you think it's time...boom.

Yes. I feel better though after reading rickb's post in the bond section:
http://gyroscopicinvesting.com/forum/bo ... #msg105571