How many Bogleheads have newly bought gold in 2yrs?

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How many Bogleheads have bought investment gold in the past two years, never owning gold previously?

Yes, I have bought gold in the past two years, never having owned investment gold in the past.
10
7%
No I have never owned investment gold.
100
72%
I Have owned investment gold prior to two years ago.
29
21%
 
Total votes: 139

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LH
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How many Bogleheads have newly bought gold in 2yrs?

Post by LH »

How many Bogleheads have bought "investment" gold in the forms of actual gold (coins, bars, etc) or GLD ETF and its ilk in the past two years, never having owning gold previously (excluding gold jewelry)

explicitly exclude gold mining stocks from this.
Johm221122
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by Johm221122 »

I guess were staying the course!!!that's good news
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nisiprius
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by nisiprius »

I wish you'd added some choices of longer periods of time than two years.

Anyone who has been holding gold for more than ten years, and has practiced a discipline of rebalancing to a stable asset allocation over that period of time, has my genuine respect.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
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stratton
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by stratton »

nisiprius wrote:I wish you'd added some choices of longer periods of time than two years.
Self selecting polls have problems as it is and I wouldn't be surprised if people who have jumped in during the last two years wouldn't answer this poll.

Paul
...and then Buffy staked Edward. The end.
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mephistophles
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by mephistophles »

I bought physical gold before the runup in price a number of years ago. That said, I did not buy it as an investment. I bought it as a form of insurance against possible future inflation and currency risk and consider it a diversifier. I do not plan ever to sell it unless a worse case scenario occurs.
64415
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by 64415 »

I just received my quarterly bonus and am going to buy some gold tomorrow. I think it is a terrible investment, and the amount I am putting into my globally diversified portfolio of passive equity funds will be twice what I am putting into gold tomorrow. I only want some as a portable form of wealth such that I can start over in another country with my human capital if the need arises. In essence, I am using it to insure my human capital. In terms of hard assets I would much rather own more farmland, but I cant take my midwestern ground on the plane to Australia or in my car to cross the Canadian border.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by 64415 »

As far as the actual type of bullion, I am debating between the Perth Mint pieces and American Gold Eagles. The serial number and signature of the assayer inside of a sealed case make the Perth mint pieces very appealing. I plan to store them at my bank in a safety deposit box.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

64415 wrote:As far as the actual type of bullion, I am debating between the Perth Mint pieces and American Gold Eagles. The serial number and signature of the assayer inside of a sealed case make the Perth mint pieces very appealing. I plan to store them at my bank in a safety deposit box.
My two cents is to buy one ounce modern bullion pieces rather than the 10 ounce bar. There is no cost savings buying the 10 ounce pieces, and it makes it a bit harder to sell in the sense that you have to find someone who wants to buy 10 ounces rather than one tenth that.

One the other hand, I encourage people to buy one ounce and not 1/2 or 1/4 ounce modern bullion pieces because there is a cost savings, even though one could argue it would be easier to sell off a 1/2 ounce coin than a one ounce coin.

I also believe for all practical purposes, if you buy from a reputable gold firm, 10 ounce bars are just as safe from counterfieting as one ounce pieces. However, if you are dealing with individuals in general, they will be much more comfortable buying ten one ounce pieces than a 10 ounce bar. Just my opinion. Could be wrong on that, but historically, kings minted coins, not bars, because they were more tamper proof.

Also, the one ounce eagles come in 20 ounce tubes that hold them. You can even find 10 ounce tubes if you prefer to store them that way in your safety deposit box.

That being said, 10 ounce perth mint bars are fine too, along with 1/2 or 1/4 bullion pieces, if you want them for potential barter or to give as gifts.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by CaliJim »

I moved 0.8% of my net worth in an experimental HB Perm Portfolio in 2009.
So yeah - I had to answer yes.
I have 0.2% in gold, plus a couple of maple leafs in a drawer.
woo hoo. big money. come on. big money!
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umfundi
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by umfundi »

hazlitt777 wrote:That being said, 10 ounce perth mint bars are fine too, along with 1/2 or 1/4 bullion pieces, if you want them for potential barter or to give as gifts.
I am astounded that anyone believes there is a future state where we may be bartering 10 oz bars of gold.

Or, maybe I am just naive, and I do not recognize the trolls.

By the way, I just sold the Krugerrand I discovered in a drawer with my Dad's stuff. His slide rule is not for sale.

Keith
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

umfundi wrote:
hazlitt777 wrote:That being said, 10 ounce perth mint bars are fine too, along with 1/2 or 1/4 bullion pieces, if you want them for potential barter or to give as gifts.
I am astounded that anyone believes there is a future state where we may be bartering 10 oz bars of gold.

Or, maybe I am just naive, and I do not recognize the trolls.

By the way, I just sold the Krugerrand I discovered in a drawer with my Dad's stuff. His slide rule is not for sale.

Keith
They are held for diversification's sake. I doubt buyers think they would use them for barter. I imagine they would be purchased by those with higher net worths than many of us. But I still believe the one modern bullion pieces are the "sweet spot."
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by umfundi »

hazlitt777 wrote: if you want them for potential barter
hazlitt777 wrote:I doubt buyers think they would use them for barter.
Of course. Perfectly clear. Thank you.

Keith
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LH
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by LH »

hazlitt777 wrote:
umfundi wrote:
hazlitt777 wrote:That being said, 10 ounce perth mint bars are fine too, along with 1/2 or 1/4 bullion pieces, if you want them for potential barter or to give as gifts.
I am astounded that anyone believes there is a future state where we may be bartering 10 oz bars of gold.

Or, maybe I am just naive, and I do not recognize the trolls.

By the way, I just sold the Krugerrand I discovered in a drawer with my Dad's stuff. His slide rule is not for sale.

Keith
They are held for diversification's sake. I doubt buyers think they would use them for barter. I imagine they would be purchased by those with higher net worths than many of us. But I still believe the one modern bullion pieces are the "sweet spot."
I just came back from the local Pompeii exhibit, they have gold and silver coins from about 2000 years ago now, they had it that the silver coins were used in trade, but the gold was used as a store of wealth, because it was too large to be useful much in trade. Nothing much has changed.... I agree 10 ounce gold is too big, too expensive for barter.

It is also easier to fake. harder to test. Gold coins are better.

Did you know the ability to make concrete was lost for 1000 years by mankind? Do you think a "modern" roman citizen circa 2000 years would have ever dreamed of that? That mankind would just lose the knowledge? Wild stuff.

Somehow, 2000 years from now, I kinda doubt that US dollars will play a role in museums much, but I bet there will be displays with american eagle gold coins from current day, gold coins from 1000 years from now too, along with some from then 4000 years ago from pompeii. assuming of course, that we do not gain the ability to manufacture non radioactive gold with nuclear physics.
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LH
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by LH »

stratton wrote:
nisiprius wrote:I wish you'd added some choices of longer periods of time than two years.
Self selecting polls have problems as it is and I wouldn't be surprised if people who have jumped in during the last two years wouldn't answer this poll.

Paul
yeah, these polls are certainly not scientific.

I always think of it the opposite way though, if someone saw the title, and it was applicable to them, they would be more likely to read the post, and then the sample would be biased towards those it applies to......

No one knows of course. Kinda like a Rorschach blot with zero significance (if any of the blots actually do have significance anyway).
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by ilmartello »

Between 1980 and 2000, the price of gold in USD dropped 75 percent.

I bet the number of people who had a fixed allocation to gold in that period, and re balanced into it as it bled money could fit into a Honda Civic.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

umfundi wrote:
hazlitt777 wrote: if you want them for potential barter
hazlitt777 wrote:I doubt buyers think they would use them for barter.
Of course. Perfectly clear. Thank you.

Keith
Sorry about that. I meant only to refer to the 1/4 and 1/2 ounce bullion coins as bullion one would want to use for barter. I should have written the sentence with a little more clarity.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

ilmartello wrote:Between 1980 and 2000, the price of gold in USD dropped 75 percent.

I bet the number of people who had a fixed allocation to gold in that period, and re balanced into it as it bled money could fit into a Honda Civic.
But from 1971-2012 gold has been up around 9% annually.

What will happen to those that don't have gold as part of a diversified portfolio from 2001-2021? We shall see I guess.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by trico »

I sold all my gold when someone in the industry said gold was going to $20,000.00 per oz. Just like I sold all my stocks in 2001 when someone said the dow was going to 30,000. So now when bonds are so hi I am selling my bonds and buying stocks. I did this in October 2011, when we had a bear market. I only buy something when it's in a bear market and the world is comeing to end shortly. If someone said oil was going to $300 per barrel I will sell my oil stocks.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by Clearly_Irrational »

I hold gold now in ETF form. I'll continue holding it until we have positive real interest rates again.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by ilmartello »

hazlitt777 wrote:
ilmartello wrote:Between 1980 and 2000, the price of gold in USD dropped 75 percent.

I bet the number of people who had a fixed allocation to gold in that period, and re balanced into it as it bled money could fit into a Honda Civic.
But from 1971-2012 gold has been up around 9% annually.

What will happen to those that don't have gold as part of a diversified portfolio from 2001-2021? We shall see I guess.
Yes because it did real well in the 70's and the 00's. What I was getting at is how any people maintained a reasonable allocation to gold even when it was doing poorly, as opposed to when it was heating up.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by chaz »

Only DW's jewelry.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by unclemick »

:oops: 1970. A few gold coins. Waaaay overpriced - ? 250/ounce equivalent.

Still in my safety deposit box - they are purty!

heh heh heh - I don't usually admit to such things in polite conversation. But at least it was pre Bogle's Folly. :annoyed
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

ilmartello wrote:
hazlitt777 wrote:
ilmartello wrote:Between 1980 and 2000, the price of gold in USD dropped 75 percent.

I bet the number of people who had a fixed allocation to gold in that period, and re balanced into it as it bled money could fit into a Honda Civic.
But from 1971-2012 gold has been up around 9% annually.

What will happen to those that don't have gold as part of a diversified portfolio from 2001-2021? We shall see I guess.
Yes because it did real well in the 70's and the 00's. What I was getting at is how any people maintained a reasonable allocation to gold even when it was doing poorly, as opposed to when it was heating up.
I agree with you wholeheartedly that too many investors try to chase the latest hottest investment and try to time when to buy and sell. That can happen with stocks, bonds, gold, real estate, homes etc. I think the Boglehead philosophy is very applicable to all investors, including those of us who believe in having gold, along with stocks and bonds in an attempt to be fully diversified.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

Clearly_Irrational wrote:I hold gold now in ETF form. I'll continue holding it until we have positive real interest rates again.
I would humbly advice you to just make it a permanent part of your portfolio and not try to time when to get in and out of it. Maybe a range of 10-20% would be a good range to use if you wanted to make a "variable" allocation. IMO.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by hazlitt777 »

trico wrote:I sold all my gold when someone in the industry said gold was going to $20,000.00 per oz. Just like I sold all my stocks in 2001 when someone said the dow was going to 30,000. So now when bonds are so hi I am selling my bonds and buying stocks. I did this in October 2011, when we had a bear market. I only buy something when it's in a bear market and the world is comeing to end shortly. If someone said oil was going to $300 per barrel I will sell my oil stocks.
May the force be with you! :wink:
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by jaj2276 »

I was one who voted Yes. I adjusted my AA last year to include 10% physical gold and silver. Why? I wanted an inflation hedge that did not have sovereign, fiat currency, or counter-party risk. So no TIPS, no ETFs holding physical gold, no paper currencies.

I admit that I didn't think about these risks very much before. But after these last few years, I know that these risks do exist, regardless of how unlikely they are to come about.

I hope to never use this 10% of my portfolio and to eventually give it away.
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Re: How many Bogleheads have newly bought gold in 2yrs?

Post by Clearly_Irrational »

hazlitt777 wrote:I would humbly advice you to just make it a permanent part of your portfolio and not try to time when to get in and out of it. Maybe a range of 10-20% would be a good range to use if you wanted to make a "variable" allocation. IMO.
I understand your point and for the most part I try to avoid market timing these days. In my current model, I'm using gold as a cash alternative so it only makes sense to hold it when it's paying the most (zero) versus cash (currently -2.1% or so for something like SHY).
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