Gyroscopic Investing

Unlike most of the world, South Koreans are embarking on a gold-buying spree this year. I think they are smart and shrewd people, and investors in other parts of the world just might learn something from them about diversification and buying an asset when it is on sale:


http://www.fxstreet.com/news/forex-news ... 7118d1d2bf

Maybe when all the gazillion Cash for Gold stores that popped up over the past few years change to Gold for Cash stores, we'll be somewhere around a peak. 

Cortopassi wrote: Maybe when all the gazillion Cash for Gold stores that popped up over the past few years change to Gold for Cash stores, we'll be somewhere around a peak. 

Maybe, but I think a giveaway for the true peak in gold will be when posters on the Boglehead list start asking, "What could possibly go wrong if I convert all of my assets into a 100% gold portfolio?"

goodasgold wrote:

Cortopassi wrote: Maybe when all the gazillion Cash for Gold stores that popped up over the past few years change to Gold for Cash stores, we'll be somewhere around a peak. 

Maybe, but I think a giveaway for the true peak in gold will be when posters on the Boglehead list start asking, "What could possibly go wrong if I convert all of my assets into a 100% gold portfolio?"

I don't think that will ever happen. That would be like the Pope declaring he is Jewish.

However, I don't think we have to worry about a peak any time soon, after a near 50% drop from the peak a few years ago. At this point, I'd just like to see some more capitulation here so I can be reasonably sure that the bottom is in.

Libertarian666 wrote:

goodasgold wrote:

Cortopassi wrote: Maybe when all the gazillion Cash for Gold stores that popped up over the past few years change to Gold for Cash stores, we'll be somewhere around a peak. 

However, I don't think we have to worry about a peak any time soon, after a near 50% drop from the peak a few years ago. At this point, I'd just like to see some more capitulation here so I can be reasonably sure that the bottom is in.

My crystal ball tells me that gold will peak when Buffalo wins the Super Bowl. 

Libertarian666 wrote:
However, I don't think we have to worry about a peak any time soon, after a near 50% drop from the peak a few years ago. At this point, I'd just like to see some more capitulation here so I can be reasonably sure that the bottom is in.

I agree.  I have a sense that if we poke back up above $1100 that everyone will again immediately think yeah, the bottom is in and then get crushed again.

I think it needs to go below $1000 for me to hate the stuff so thoroughly that when it does start rising it will need to get to $1500+ before I even start considering that it might not go down for a while. 

And that's a good thing!!!  Because some day, at some point, it will turn green again for me and I'll be pleasantly surprised.  All I can do for now is continue building the cash portion of the PP through my 401k.

Cortopassi wrote:All I can do for now is continue building the cash portion of the PP through my 401k.

Do you have decent options for holding cash in your 401k? The best I have is a Stable Value Fund w/ a somewhat high ER.

goodasgold wrote: Maybe, but I think a giveaway for the true peak in gold will be when posters on the Boglehead list start asking, "What could possibly go wrong if I convert all of my assets into a 100% gold portfolio?"

Libertarian666 wrote: I don't think that will ever happen. That would be like the Pope declaring he is Jewish.

Would Cardinal O'Connor be good enough?
The Rabbi Cardinal O’Connor Never Knew: His Grandfather
http://www.nytimes.com/2014/06/11/nyreg ... .html?_r=0