Future of the Dollar -- interesting analysis

[skyson]

Re: Future of the Dollar -- interesting analysis

if 15% gold & 85% treasuries 2001 - 2008... i get ~47% total.... 47.1% gold & 48% treasuries. compared to stocks?

what i am pondering at this point is: itulip's position is that the argument about deflation/inflation is over, and inflation is inevitable. then why should we allocate only 30% in gold but 70% in treasuries? in a true inflationary environment(not mentioning the risk of sudden $US devaluation), over the long term(5-10 years), is this allocation a losing proposition? why not 70% gold and 30% treasuries?

[cjppjc]

Re: Future of the Dollar -- interesting analysis

what i am pondering at this point is: itulip's position is that the argument about deflation/inflation is over, and inflation is inevitable. then why should we allocate only 30% in gold but 70% in treasuries? in a true inflationary environment(not mentioning the risk of sudden $US devaluation), over the long term(5-10 years), is this allocation a losing proposition? why not 70% gold and 30% treasuries?

Because only nuts and crackpots have that much in gold.

[skyson]

Re: Future of the Dollar -- interesting analysis

Because only nuts and crackpots have that much in gold.

i didn't know that good investing needs to take sides. err...are we still friends?

[cjppjc]

Re: Future of the Dollar -- interesting analysis

i didn't know that good investing needs to take sides. err...are we still friends?

You can never have too many friends.



Accept the things to which fate binds you, and love the people with whom fate brings you together, but do so with all your heart.


Marcus Aurelius

[metalman]

Re: Future of the Dollar -- interesting analysis

what i am pondering at this point is: itulip's position is that the argument about deflation/inflation is over, and inflation is inevitable. then why should we allocate only 30% in gold but 70% in treasuries? in a true inflationary environment(not mentioning the risk of sudden $US devaluation), over the long term(5-10 years), is this allocation a losing proposition? why not 70% gold and 30% treasuries?

diversification... what if gold sales are taxed at 50%? you want 70% of your $$$ tied up in an asset that you have to sell on the black market?

[skyson]

Re: Future of the Dollar -- interesting analysis

diversification... what if gold sales are taxed at 50%? you want 70% of your $$$ tied up in an asset that you have to sell on the black market?

so you are implying that if a member lives outside of US, in a gold friendly nation, or has the ability to move gold to the desired destination(or at least for now, one could still legally move gold across borders, right?), the 30/70 rule is not applicable?

not trying to argue, but i believe quite some itulipers are outside of US(like hayekvindicated).