PP Alchemy
Posted: Tue May 10, 2011 5:51 pm
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Gyroscopic Investing
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PP Alchemy
https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=937
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Re: PP Alchemy
Posted: Tue May 10, 2011 6:47 pm
Too funny Clive!
Re: PP Alchemy
Posted: Sat May 14, 2011 8:32 am
Interesting approach. Just a few questions....
Don't you think that the higher returns are a result of the falling interest rate environment that we had since the early 80's? I imagine that a portfolio with 50 percent LT treasuries would underperform in a rising rate environment.
Where and how do you purchase such individual commodity contracts? And would an index ETF for commodities like GCC do a similar job?
I like gold in the portfolio but what worries me the most about it is that it is slightly whimsical in that it doesn't really have an actual use. Granted that it has been money for thousands of years, beyond a general acceptance as such it really has no value. If for some reason it were to fall out of favor and people weren't interested in it anymore you wouldn't be able to sell it to anyone.
In that case silver seems like a safer bet in that it actually has industrial value....
What do you think?
Don't you think that the higher returns are a result of the falling interest rate environment that we had since the early 80's? I imagine that a portfolio with 50 percent LT treasuries would underperform in a rising rate environment.
Where and how do you purchase such individual commodity contracts? And would an index ETF for commodities like GCC do a similar job?
I like gold in the portfolio but what worries me the most about it is that it is slightly whimsical in that it doesn't really have an actual use. Granted that it has been money for thousands of years, beyond a general acceptance as such it really has no value. If for some reason it were to fall out of favor and people weren't interested in it anymore you wouldn't be able to sell it to anyone.
In that case silver seems like a safer bet in that it actually has industrial value....
What do you think?
Re: PP Alchemy
Posted: Sat May 14, 2011 10:52 am
Hi Clive,
Thanks for the info the other day.
Re your last post para 2 is re-assuring on LT Bonds, which instinctively I feel to be expensive after their thirty year bull run. However why does the same logic not apply to gold?
Is gold a special case which can never be priced correctly?
Regards
Thanks for the info the other day.
Re your last post para 2 is re-assuring on LT Bonds, which instinctively I feel to be expensive after their thirty year bull run. However why does the same logic not apply to gold?
Is gold a special case which can never be priced correctly?
Regards