Gyroscopic Investing

I have a small allocation to GDX that is currently down approximately 25%. I am debating whether to sell GLD in the VP (+.39% since last purchase) and allocate the proceeds to GDX. Thoughts?

buddtholomew wrote: I have a small allocation to GDX that is currently down approximately 25%. I am debating whether to sell GLD in the VP (+.39% since last purchase) and allocate the proceeds to GDX. Thoughts?

Sell 25% of your GLD and buy GDX.  If GDX drops another 25%, you can do it again. 

In other words, decide on some rebalancing bands.

You might consider selling all of the gold and then using the cash from the transaction to employ a strategy similar to that above (except with cash instead of gold).

Yes, that makes a lot of sense. Thanks AdamA.

buddtholomew wrote: Yes, that makes a lot of sense. Thanks AdamA.

Take it for what it's worth, though.  I don't have the best VP track record in the world.  My experience, though, it's easier to ease in and out of positions like this than to be drastic.

Hopefully others will offer some input too. 

AdamA wrote:

buddtholomew wrote: Yes, that makes a lot of sense. Thanks AdamA.

Take it for what it's worth, though.  I don't have the best VP track record in the world.  My experience, though, it's easier to ease in and out of positions like this than to be drastic.

Hopefully others will offer some input too. 

I ended up selling the entire GLD position on Friday and investing 100% in GDX. I will re-balance accordingly at 35% bands.

The miners sure are volatile. What exactly is driving this recent rally in gold miners and precious metals? Doesn't the possibility of fed tightening and rising interest rates negatively impact the future prospects for these asset classes?