buyitcheaper

Options as a 'Gold'en Opportunity

Interesting conversation- where the out of the ground cost of mining an ounce of gold is now $600, there is effectively a floor under us. I'd see $1200 as reasonable in the next 2-3 years. As such, the relative risk reward is compelling for a reasonable portion of a portfolio.

Options as a 'Gold'en Opportunity

I agree I'd go long with the GLD and short the GDX before the converse... it's a "real" asset vs. a paper equity ultimately.

The Bedrock Case for the Return of the Gold Bull

Over a typical interest rate cycle, gold will retain its purchasing power and is convertible to legal tender. so that is specious. And anyone who would buy GLD or any other equity without a stop, deserves to lose their money. So again, somewhat specious.

Inflation doesn't rise 14% in amonth, it rises 0.09% a month, every month, for two or three years, and then you look back and that same suit that cost you $500, now costs you $950. That $1.29 dozen eggs costs $3.99 (CLM a recommendation there.)

Also, you will see beef inflating significantly this fall as the early culling due to grains incredible rise forced beef producers to push their product to market much earlier which will result in a scarcity of supply this fall. This will make support the higher overall inflation numbers which is ultimately why gold will start tracking back up toward the end of the year absent a SERIOUS intervention by the Fed, i..e a real interest rate increase of 1% point or more.

Does anyone have Volcker's number?

Fed Rate Cuts May Have Been Counter-Productive

Inflating your way out of this mess is no good. There are trillions in leveraged positions in the CDS sector that must be unwound, or simply, written off. Some banks, a la Grantham, must fail, including an I-bank or two. Otherwise, this has the potential for a great depression style market event. The dollar will be sacrificed until a Volcker style chairman emerges, jacks up rates, strengthens the dollar with its concomitant decline in commodity and oil prices. In the meantime does anyone know where I can get a Swiss Franc denominated CD?

Jim Wiandt's Five Favorite ETFs

Great article and I agree with your ETF selections and had one question - what about real estate as an additional asset class or are you using one of the above (bonds?) as a proxy?
I guess the only question is the allocation. Good choices. Vanguard's total international stock market fund might be the fund you're looking for.