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Eric Parnell, CFA  

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  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Rousseau - Thanks a lot for your comment and your kind words. I appreciate it!
    Dec 27, 2012. 09:50 PM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hi Joseph,

    Thanks for your reply and for sharing your thoughts. I think you are absolutely right that we agree on most everything except the potential direction of financial markets going forward. But I know exactly where you are coming from with your outlook, as your views make a great deal of sense to me and I would not be surprised at all if events play out as you have described. In fact, your scenarios is how events should play out given the fundamental economic backdrop underlying the markets today. I suppose in the end it all may come down to how far the Fed and other central banks are determined to go to try to prop up markets as well as how much longer markets are willing to buy into the mirage. It will be very interesting to see.

    Thanks again Joseph. I look forward to reading your future articles on SA.
    Dec 27, 2012. 09:49 PM | 1 Like Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Randle,

    Thanks for your comment and insights on both palladium and platinum. You make a number of great points here, particularly in regards to the platinum-to-gold ratio. Over the last several decades, this ratio has been as high as 2.5 and has rarely fallen below 1.0. So the fact that it has fallen below 1.0 in the past year and currently resides at 0.92 suggests that a long-term discount buying opportunity may still be presenting itself in platinum.

    Outstanding point. Thanks again.
    Dec 27, 2012. 09:11 AM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hi Cranky,

    Thanks for your comment. And I agree completely. Great points. Thanks again.
    Dec 27, 2012. 08:59 AM | 1 Like Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello cannon fodder,

    Thanks for your comment and for sharing the link to the GMA article, as this is another important consideration that people must assess when using safe deposit boxes, particularly in California. While it sounds like most states do a good job regulating on this front, clearly there are issues, particularly in certain states, that must be considered carefully. Some of the stories related in the article are certainly appalling and outrageous, and are important for people to be aware of.

    Thanks again.
    Dec 27, 2012. 08:59 AM | 1 Like Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello KRV,

    Thanks for your comment. I appreciate it. And this is a great question about the premiums associated with these closed end fund products. One could argue that the premium investors are willing to pay is tied to the greater degree of clarity and certainty associated with the actual ownership of the physical bullion and the ability to even take delivery in selected circumstances. One way that is helpful to look at the differences from net asset value is to assess the historical average premium/discount over time to identify particularly attractive entry points (i.e. a 5% premium may at first appear pricey, but if the historical average premium is 10%, it may actually represent an attractive price). But for those that have a shorter term trading view and would like to minimize their tracking error relative to the underlying spot prices, both GLD, IAU and SLV are certaintly suitable choices.

    Great question. Thanks again.
    Dec 27, 2012. 08:52 AM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Gratian,

    Thanks for your comments and excellent points on my articles throughout the year. And you make several great points here. For many, storing their physical gold and silver in a home safe or safety deposit box is sufficient. Also, keeping some cash in a safe place at home is also a good insurance policy for potentially unexpected disaster situations like storms, earthquakes and prolonged widespread power outages. Great points.

    Thanks again and Happy New Year.
    Dec 27, 2012. 08:34 AM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Joseph,

    Thanks for your comments and your insights. I always enjoy reading your articles on SA and you make a number of great points here. I completely agree with you that Fed policy does little if anything to support economic growth. And the aggressively easy monetary policy by the Fed over the last several years has not only bothered me but has been an enormous source of frustration. While I agreed with the implementation of QE1, I have been strongly against everything that has come since including QE2, the Twists and the current iteration that was announced in September and expanded in December. Not only have these programs taken what was once supposed to be extraordinary policy action and made it commonplace, it has also distorted asset prices across the board beyond all fundamental comprehension. Thus, once this policy support is inevitably withdrawn at some point in the future, the subsequent adjustment is likely to be severely painful.

    In the meantime, however, we are likely to see this asset price distortion continue in the form of rising asset prices. The past has shown that the Fed imposed flood of liquidity into the financial system has had spillover effects of rising asset prices including stocks and commodities regardless of the poor underlying economic fundamentals. And with the Fed set to expand their already bloated balance sheet by more than one-third (+$1 trillion) to over $4 trillion in 2013, we are likely to see this trend continue, particularly with other global central banks including the European Central Bank and the People's Bank of China also likely to join in.

    In many respects, this may be the final monetary policy blowout before the stimulus induced high finally ends and the cleansing begins. It will be interesting to see.

    Thanks again for your great comment. You make a lot of great points and I agree with your perspectives on the economy and the outlook.
    Dec 27, 2012. 08:18 AM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello bluesmoke,

    Thanks for your comment and great point. You are absolutely right moving gold from Tier 3 status at only 50% of market value for loan reserves to Tier 1 at 100% under Basel III is another important shift in support of the yellow metal going forward. Excellent point.

    Thanks again.
    Dec 27, 2012. 08:05 AM | 2 Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello untrusting investor,

    Thanks as always for your comment. I have appreciated you sharing all of your great insights and perspectives on my articles over the past year. Merry Christmas and Happy New Year.

    Eric
    Dec 27, 2012. 07:59 AM | 1 Like Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Interesting Times - Thanks for sharing the link to the Streible video on Bloomberg. I am inclined to agree with him given how silver has performed in the past once the Fed is fully engaged in balance sheet expanding monetary stimulus and in particular mass Treasury purchases like we saw under QE2.

    I wrote an article on this point back in August 2012, as silver has historically doubled to quadrupled the returns of stocks under balance sheet expanding monetary stimulus programs.

    http://seekingalpha.co...

    Thanks again.
    Dec 26, 2012. 03:42 PM | Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Jonathan,

    Thanks for your comment and making this good point. And building on my earlier reply to Ray, just like GLD, SLV is a good choice for short-term trading allocations to silver for the same reasons given its relatively low daily tracking error.

    Thanks again.
    Dec 26, 2012. 03:39 PM | Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Michael,

    Thank you very much for your comment on my article. I genuinely appreciate it and hope that you are doing well.

    Thanks again.
    Dec 26, 2012. 03:34 PM | Likes Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello tmorris007 - Thanks for your comment. This is a great question and bd4uandu is right in his reply that both PHYS and PSLV can be held in an IRA without penalties or additional tax issues.

    Hi bd4uandu - Thanks for your reply. I appreciate your comment as always.
    Dec 26, 2012. 03:33 PM | 1 Like Like |Link to Comment
  • Eric Parnell Positions For 2013: Gold's An Essential Diversifier In Any Portfolio [View article]
    Hello Interesting Times,

    Thanks as always for your comments. Inspired by your beliefs on gold and silver from your previous comments and our discussions, I think it is worthwhile to reiterate for readers on my reply here that taking delivery of the physical is the ideal way of owning gold and silver for the very long-term. It does involve some additional considerations such as storage and insurance, but is it as secure an option as you can get at the end of the day.

    Thanks again and I look forward to reading your future comments.
    Dec 26, 2012. 03:24 PM | Likes Like |Link to Comment
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