Gyroscopic Investing

I have just started my PP, but I haven't purchased any gold yet. I'm trying to figure out the best time to go in. I'm thinking that any more bad news out of Europe will cause gold prices to fall due to strengthening dollar, so I kind of want to wait until the end of june at least. What do you think?

explodingdust wrote: I have just started my PP, but I haven't purchased any gold yet. I'm trying to figure out the best time to go in. I'm thinking that any more bad news out of Europe will cause gold prices to fall due to strengthening dollar, so I kind of want to wait until the end of june at least. What do you think?

The dollar may strengthen relative to the euro, but both may fall relative to gold.  The Fed will likely wind up propping up Europe more with currency swaps and the like, which would be bullish for gold.  I would feel naked only having 3 of the 4, especially right now; I currently only have gold in etf's, and I feel exposed.  At the end of the day, you have to do what you're comfortable with, but just remember that the future is unknowable; we don't know which asset will hold the portfolio afloat.

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explodingdust wrote: I have just started my PP, but I haven't purchased any gold yet. I'm trying to figure out the best time to go in. I'm thinking that any more bad news out of Europe will cause gold prices to fall due to strengthening dollar, so I kind of want to wait until the end of june at least. What do you think?

Just close your eyes and jump.  Better to have the portfolio all put together than to try to time it, and miss out on a big gain.

hoost wrote:

explodingdust wrote: I have just started my PP, but I haven't purchased any gold yet. I'm trying to figure out the best time to go in. I'm thinking that any more bad news out of Europe will cause gold prices to fall due to strengthening dollar, so I kind of want to wait until the end of june at least. What do you think?

The dollar may strengthen relative to the euro, but both may fall relative to gold.  The Fed will likely wind up propping up Europe more with currency swaps and the like, which would be bullish for gold.  I would feel naked only having 3 of the 4, especially right now; I currently only have gold in etf's, and I feel exposed.  At the end of the day, you have to do what you're comfortable with, but just remember that the future is unknowable; we don't know which asset will hold the portfolio afloat.

I agree with Hoost. I initially started investing back in the Fall of last year and was worried about diving in to investing and was waiting for a "safe" moment to jump in after some political stuff settled. I feel though that whenever you jump in, there will always be political instability for the rest of our lives. All you can do is go for the 4 portfolio parts and cross your fingers.

If the PP was hitting some kind of short term peak (as it did in the third quarter of 2011) I might be tempted to wait to start up a new PP.  With the PP being flat for a few months, however, I see little risk in just jumping into all four assets right now.

There are no guarantees with the PP or any other investment strategy, but the sooner you get started with the PP, the sooner you can forget about your investments and focus your energy on other things in life.  Every day you wait hoping for a better entry point is one more day that you are engaging in the mostly pointless exercise of market timing.

If you had jumped in the pool yesterday, your GLD would have been up 1.11% as of this morning...