Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-27-2013, 03:15 PM   #21
Dryer sheet aficionado
 
Join Date: Apr 2013
Posts: 38
Quote:
Originally Posted by Bestwifeever View Post
Okay, here's what to do. Sell the gold from the portfolio and replace it with some gold necklaces and bracelets and earrings (no gemstones, just gold). You'll get to enjoy wearing it forever (and it will surely go up in value by the time it gets cashed in as part of an estate).
I already have more gold than I know what to do with. In our culture it's common to give 24K gold when you get married. The problem is, I hate yellow gold (prefer white gold or platinum). So it all sits in the safe...obviously, I should have sold it when gold was at an all-time high.
__________________

__________________
hsmom4 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-27-2013, 03:15 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,266
Quote:
Originally Posted by Bestwifeever View Post
Okay, here's what to do. Sell the gold from the portfolio and replace it with some gold necklaces and bracelets and earrings (no gemstones, just gold). You'll get to enjoy wearing it forever (and it will surely go up in value by the time it gets cashed in as part of an estate).

It in interesting that I saw a program and that is what they do in India (which I think is the country with the largest purchase of gold)....

The jewelry is also easy to transport at a moments notice.....
__________________

__________________
Texas Proud is offline   Reply With Quote
Old 06-27-2013, 03:37 PM   #23
Dryer sheet aficionado
 
Join Date: Apr 2013
Posts: 38
Quote:
Originally Posted by Texas Proud View Post
It in interesting that I saw a program and that is what they do in India (which I think is the country with the largest purchase of gold)....

The jewelry is also easy to transport at a moments notice.....
Yes, it seems like old traditions die hard, even when you're raised in Canada. Personally, I would have rather gotten a nice set of flatware, an espresso machine, CASH, etc...
__________________
hsmom4 is offline   Reply With Quote
Old 06-28-2013, 03:57 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,683
If one is looking for a technical discussion of gold pricing, there is an interesting and balanced article here by Mark Hulbert:
Gold: Is the bad news over? - Mark Hulbert - MarketWatch

Quote:
When gold hit its high over $1,900 an ounce in September 2011, for example, the ratio was more than 8 to 1. In January 1980, the ratio stood at more than 11 to 1.



Unfortunately for the gold bugs, the current gold/CPI ratio — 5.3 to 1 — is still above average, even in the wake of gold’s plunge over the past three months. To be in line with that average, gold would have to trade for $780 an ounce. “Note carefully,” Erb says, “our research doesn’t provide a basis for predicting when gold will once again trade at fair value, however — only that it will eventually do so.”
BTW, I was one of the stupid ones that purchased gold in 1980. Fortunately I sold all of it except for one Canadian Maple Leaf coin kept as a reminder. Will probably never sell that 1 ounce coin.
__________________
Lsbcal is online now   Reply With Quote
Old 06-28-2013, 05:54 PM   #25
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 925
Quote:
Originally Posted by haha View Post
I have looked around on the site a bit; but, did not find obvious answers to the questions that came immediately to mind with this approach:
  • How to avoid catching a falling knife?
  • What is the sell signal?
While I like the idea of buying low and selling high and am not opposed to moving against the general crowd sentiment, I would like to see more details around their model, back testing, etc.


I have tried this approach in the past, both with sectors and individual stocks, when I thought that stock picking was cool and that I could do it at a profit. And, I am sure you can imagine how well that worked out for me.


Emotionally, I have wanted to buy various country or region specific Asian and European indexes; now, gold is starting to tug at my heart purse strings. While I keep telling myself that establishing and maintaining an AA is a much better approach, the gambler in me really wants to chase some extra returns with beaten down sectors. (Neither gold nor individual countries, other than USA, figure into my current AA.)
__________________
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 06-29-2013, 04:36 PM   #26
Full time employment: Posting here.
Al in Ohio's Avatar
 
Join Date: Jun 2013
Location: Columbus OH
Posts: 688
You just need to remember, precious metals are money, nothing else is. Stocks, bonds and cash are just currency. When the $hit hits the fan, precious metals ( ie money) soars in value and all else tanks. 5-10% is considered an equal inverse hedge to an economic hyper-inflationary meltdown. Just don't consider a precious metal fund or "certificate of holdings" the same thing.
__________________
Ohio INTJ ENG ER Hopeful
Al in Ohio is offline   Reply With Quote
Old 06-29-2013, 04:47 PM   #27
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,102
Quote:
Originally Posted by Al in Ohio View Post
When the $hit hits the fan, precious metals ( ie money) soars in value and all else tanks.


Won't do you much good when the asteroid hits...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-30-2013, 07:38 AM   #28
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,705
Quote:
Originally Posted by hsmom4 View Post
Thank you for the additional advice and links. We're still discussing the best strategy, but leaning towards holding until the end of the year and see what happens. I don't think DH and I are on the same page as far as having Precious Metals, in our overall investment portfolio. But since it's not a high percentage, it's not worth a huge debate.
USAGX holds companies that are in the metals and mining business. Refer to Yahoo or any financial site to find out the holdings and other important fund information. Also, try USAA https://www.usaa.com/inet/pages/mc_0050?akredirect=true to see their explanation of recent decline.

AFAIK, you do not hold any gold because you have this fund. I think you said it is in taxable account. In that case, I would hold, and watch how it rebounds over time. Collect the dividend in December and go out to dinner.

If you want to move this to Vanguard, there are ways to do it, but I might be persuaded to sell if I needed the losses.

If you have an in-house dispute about gold, it might help to define exactly what you are trying to accomplish with USAGX. I think you need to discuss the goals, and define how USAGX fits into the mix (or doesn't).

Even though you say this is only 2.5%, so of little impact, it really was a commitment of 5% at the time. So I think this is significant. At the time, your plan committed enough to this area to make a significant tilt over time. So it ends up being education which cost you 2.5%, at least at this juncture.
__________________

__________________
target2019 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 03:13 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.