Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Fiat Ponzi

Like Tree2Likes
  • 1 Post By ancona
  • 1 Post By rblong2us

LinkBack Thread Tools
Old 05-14-2013, 04:30 PM   #1
Predaceous stink bug
Join Date: Jun 2012
Location: Left Coast
Posts: 167
Liked: 71 times
How much of your portfolio is in PMs?

Been reading various PM forums for the past year, and continually shocked at how many people only stack PMs and distrust other investments.

There are cycles to everything, and I TRY (try being the operative word) to stay ahead of the masses. Of course I make mistakes, and getting into PMs late in the game was one of them...

In the past year
Gold was down 8.9%
Silver was down 17.6%
S&P was up 23.3%
My house value was up ~22%

Taking it out 5 years
Gold was up 57.64%
Silver was up 35.5%
S&P was up 18.8%
My house value was down ~8%

Taking it out even further, in 10 years
Gold was up 207.8%
Silver was up 63.5%
S&P was up 76.6%
My house value was up ~29%

With the recent MASSIVE DROPS is PMs, they now constitute ~3.5% of our portfolio, not including home equity. The plan is to divest from the stock market in the next 12 months (S&P went from 683 to 1,650 in 4 years! - That ain't right). Get more into real estate (think there's more room to grow), and buy more PMs (buy low right?).

Last edited by superhero; 05-14-2013 at 06:34 PM.
superhero is offline   Reply With Quote
Old 05-14-2013, 07:08 PM   #2
Yellow Jacket
ancona's Avatar
Join Date: Nov 2011
Location: Waaay south
Posts: 3,370
Liked: 2046 times
You posed an interesting question Superhero.

While I will not state percentages, PM's are indeed a significant portion of my portfolio [such that it is anyway] and home equity is also considered, since at this time I actually still have a HELOC that I can tap for whatever I choose. However, I also have some other things I consider significant assets that I can either sell or trade for things. The first asset is weapons; many and varied. The second is ammo, far more than one would consider a reasonable quantity, even for regular sport or target purposes.

In addition, I have at my fingertips a completely outfitted fabrication shop, attached directly to the end of our building at my firm. As an officer of the company, one of the many perks I enjoy is unfettered access to the shop at any time to utilize any of the tools whenever it suits me to do so. This thing, I find to hold a greater value than most of the other assets I have.

Other assets I will not list, but suffice it to say that they are important parts of the overall mix of items and serve to round out our portfolio.
Jay likes this.
All things being equal, the simplest answer is quite often the correct answer - Occam
ancona is offline   Reply With Quote
Old 05-15-2013, 07:22 AM   #3
Golden Cockroach
PMBug's Avatar
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,173
Liked: 2464 times
I don't care to disclose my personal percentages, but my position is much like ancona's - heavily weighted to hard assets (real estate, tools, pms).

I have no confidence in the paper casinos. I don't like gambling.
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 05-15-2013, 08:26 AM   #4
Yellow Jacket
Join Date: Oct 2011
Posts: 2,053
Liked: 925 times
All I can say is that I'm not all-in. Diversification is mandatory if you're living of investment income like I do.
swissaustrian is offline   Reply With Quote
Old 05-15-2013, 09:31 AM   #5
Ground Beetle
Join Date: Apr 2013
Posts: 501
Liked: 304 times
I believe that nobody can predict the future and the best strategy is to be as well diversified as your personal circumstances allow with your home being the first and best place for building long term savings. I think PM's should only be a side bet and more of a hobby for the fun of it, because coins are cool. If you really think the country is going to fall apart the best paper holding I can think of might be a very large supply of toilet paper. I bet people would trade almost anything they had for a fresh roll if times got really hard.
Aubuy is offline   Reply With Quote
Old 05-15-2013, 09:42 AM   #6
Yellow Jacket
rblong2us's Avatar
Join Date: Nov 2011
Location: off world
Posts: 2,023
Liked: 889 times
there will be plenty of toilet paper -

just be sure to get in quick when the runs start and not end up with the electronic version
Aubuy likes this.
if it cant be done with a digger .... it cant be done

Last edited by PMBug; 05-15-2013 at 11:20 AM. Reason: fix image
rblong2us is offline   Reply With Quote
Old 05-19-2013, 10:48 PM   #7
Super Moderator
benjamen's Avatar
Join Date: Mar 2012
Location: Migratory
Posts: 1,620
Liked: 685 times
First, let me define how I classify my portfolio. Then how I break them down.

Class 1: savings
90-120 days in expenses of the local fiat currency
Any further savings go towards liquid, central bank resistant savings; PMs. I prefer a minimum of 1 years worth if expenses in this category.
Holdings in this category increase as my perceived country risk increases.

Class 2: Investments
Anything that produces a reliable stream of fiat income, that increases in pace of inflation. This includes things such as dividend stocks, rental real estate, ect. If you keep these long term, the changes in the price are irrelevant. Any cash flows generated are immediately converted to PMs or more investments to reduce fiat currency risks.
My holdings in this category increase as my percieved country risk decreases.

Essentially, if the country in which I reside loses its mind, my entire portfolio moves to PMs and I change countries. As things improve, I work towards owning enough investments to replace the cash flow of my employment.
I drive men mad
For love of me,
Easily beaten,
Never free.

PMBug 101 *** Forum Rules

Last edited by benjamen; 05-19-2013 at 10:52 PM.
benjamen is offline   Reply With Quote

Thread Tools

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 On
Pingbacks are On
Refbacks are On

All times are GMT -5. The time now is 12:58 AM.

Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of copyright © 2011 - 2020 Measuring Up. All Rights Reserved.