Vladimir Senkov

Why Gold Hasn't Been a Hedge Against Inflation

John,
you said that eventually it might make sense to hedge long gold positions by going long oil.
Excuse me for stating the obvious, but this is very difficult to do with oil. Gold is easy. I buy bullion and store it in a vault. Oil on the other hand is expensive to store. If you think oil is "cheap" now look at the contango! It's not going to be cheap at all if you wanted to hedge a longer term position (even if it is just a few months long).

ELEMENTS Currency ETNs Aim to Outperform Comparable ETFs

Thank you very much, I was just looking for someone to explain the new ETNs!

Japan: PM Adviser Suggests Diversifying Foreign Reserves

Interesting stuff.

I'm not 100% sure if Japan is holding short term paper they are rolling, like the Chinese, but I assume so.
If that's the case, they don't need to do anything to get higher yield, it will just happen automatically.
let's see . . . first 200B:
Corporate paper might not be the place to go with M&A activity the way it is now and rates going higher in the future.
I'll leave the mortgage-backed securities part to the imagination :)

200B in stocks, ok. i guess the market will continue to rally when both Chinese and now Japanese pour the cash . . .
Any ideas about 300B in "other". I'd like to know what that is, sounds interesting.

ok, let's hope they make good money on those investments. with some luck (no luck really, all they need to do to keep this thing afloat is to keep the yield on the yen low) we will all make money forever. i mean, until the carry trade starts to unwind. then it's rush to the exits for everybody. i guess if they are seriously planning to diversify into higher yield this "worst case scenario" is not going to happen soon. after all why would one go into stocks for less than say 10 years?