I'm not suggesting he might not be right about gold, I'm merely trying to connect his posts to some sort of holding in gold and not finding it easy. The General is/was another major gold bull but in the end declared he had held a mortgage free house, so not really practising as he preached.
If I see horse tipsters on TV the ones I listen to are the ones who I know put their own money on their selections. Not someone like the Daily Mirror gimp who admits he hardly bets and I suspect when he does his stake is quite low.
I have often wondered how much money exactly the goldbugs are committing to their view to judge how serious they actually are. Anyone honest enough to admit how much they have invested in gold on here? I'll go first, a big fat zero having sold my 5k of holdings last week.
Gold bulls need to be distinguished from gold bugs. Both are bullish on gold, but the gold bug goes further than the bull tending towards a complete politico-economic world-view*, which no doubt most are familiar with.
As a gold bull, I'm bullish on gold because I want to be as liquid as possible in the stongest currencies. I don't see a problem with owning free-hold property, but it should primarily be thought of as a real asset as opposed to a financial one. I doubt whether gold bugs are against holding free-hold property either. I wouldn't 'leverage up' because I think there's a good chance currency will strengthen against assets/ property etc. But here the gold bug might differ, and decide it's a good bet to leverage up as the currency is expected to hyper-inflate shortly, and a few ounces of gold would then pay off the mortgage.
How much gold to own? I think it would differ for everyone. Most I think are happy to have the standard token insurance amount of 5% of their worth or so... just in case of Armageddon etc. The gold bug would want near 100% of their liquid worth in gold... but more often than not it is in silver, or gold miners. The gold bull is somewhere in between; he just views gold as an appreciating currency in a deflationary environment. He wants to be as liquid as possible and in the strongest currencies, so might look at putting anywhere up to 50% of his liquid worth in gold, and then keeping the remainder perhaps divided between the reserve currency [US dollar] and his native currency.
Edited by roman holiday, 22 March 2012 - 01:44 AM.