Investment Returns

[Anonymous]

UNWPX holds smaller companies — median market cap of $1.2B vs. $5.8B for VGPMX — and uses warrants/options (27% of its holdings) to amplify its holdings. Smaller companies have, historically, higher returns than large companies.

I’ve never used a broker and have never bought individual stocks (except the stock of the companies that I worked for). So, no, I haven’t looked to Zeal for recommendations.

I’ve been on the buy side in a big company (i.e., worked in the business development function), and have come to the conclusion that there are many, many factors required for a company to be a success. As a working stiff, I don’t have the time to fully understand all of those elements (management, product, market, competition, etc.) for a reasoned, prudent investment in an individual company. Hence, I don’t buy individual stocks. And, having spent a good bit of time with sell-side Wall Street analysts and investment bankers, I’d never rely on their thoughts for where to park my money.

Nope, I’m happy with mutual funds, and am happy with VGPMX and UNWPX, until one of you folks can point me to something better!

[LookoutBelow]

Good Luck !

 

Casino Royale Wall Street…..Dont put ANYTHING on the table that your not willing to lose……That leaves me out.

Also dont confuse a stock "certificate" of a gold "mining" company, with the ownership of actual bullion…….when the SHTF, your "certificates" at least maybe can be used in the bathroom.

[Anonymous]

LoB, I share your concerns; as I tell my wife, my concerns during the upcoming ‘fun’ times are (1) physical security for my family and (2) not getting our savings confiscated.

I’m not being alarmist; during the Depression, Roosevelt outlawed the individual holding of gold, and gave, de facto, folks who turned in their gold a 42% haircut.

Make sure you shout out when you see the Feds coming knocking on doors and the South Africans and Brazilians nationalizing gold mines. I want to earn speculative returns while I can, but realize that I’ll need to move my money to something safe if things get really bad.

[truongphu]

jg, for such a newbie like myself, would you elaborate on “safe” places to park your money when things get really bad ? thanks.

[Anonymous]

tp, my preliminary thoughts are:

TIPS — Treasury Inflation Protected Securities: U.S. Treasury securities whose yield goes up and down with inflation; provides protection against inflation.

Gold bullion stored at a Swiss bank.

Good, solid local bank — I bought ratings for California from http://www.veribanc.com/ (their Blue Ribbon Bank Report; single issue is $35) and may consider moving from my current bank, Bank of America, to one with high reserves if things deteriorate.

These are options that I will consider at the right time, and I have no preconceived notion as to which is best.

What are your thoughts, folks?

[blahblahblah]

Hey jg, do you know of a company offering gold stored in Switzerland? I have been contemplating a bit of gold but I don’t want to have to keep Kruggerands in a shoebox.

[powayseller]

bullionvault.com stores gold in Brinks vaults in Zurich, New York, or London. The gold never leaves, just the ownership changes hands. The bullion is tracked from the moment it leaves the mining company, so it has a history and the buillon is sequentially stamped. This is important I think for institutional purposes and resale. This is the company recommended by Eric Jantsen (iTulip.com)

Other options are keeping some 1 oz. gold coins for spending, if that need ever arises. According to Adam Hamilton, owner/publisher of Zeal, they should be fungible. Get something easily exchanged, like 1oz. American Eagles, Canadian Gold Maple Leafs, or South African Krugerrands.

[qcomer]

JG,
What are your returns for the last six months? Gold hasn’t moved much in last siz months. I would like to know if you have still been able to make some nice profits duringn this time (thus indciating the benefit of holding commodity stocks then commodity futures).

[Anonymous]

Nope, you’re right, qc. UNWPX and VGPMX haven’t done much in the last six months, just trying to hold onto their earlier-in-the-year gains:

http://finance.yahoo.com/q/bc?t=1y&s=UNWPX&l=on&z=m&q=l&c=VGPMX

Thinking through stocks vs. futures is beyond my capabilities.

[waiting hawk]

Storing gold myself is working great and will work better for taxes **wink wink

My website tracking Inland Empire

[Anonymous]

Concho, I e-mailed this outfit, and received a courteous phone call and some educational e-mails/website links:

http://www.safewealth.com/

Seems like there are a number of private banks in Switzerland that specialize in ‘preservation of capital.’

A well-heeled fellow that I chatted with keeps his gold coins in a bank safe deposit box. Note — in the ’30s, when FDR required Americans to turn in their gold, he stopped access to safe deposit boxes.

An interesting alternative is to buy shares in StreetTracks, which holds its gold in London, outside of U.S. government reach:

http://www.streettracksgoldshares.com/us/faq/faqs.php

Unfortunately, in time of crisis, many governments may act in concert, or feel obligated to under pressure from the U.S. In the old days, the Swiss would thumb their nose at the U.S., but after reading “Gold Wars” by Ferdinand Lips, I’m not sure if the Swiss still have the backbone to do such.

Tell me if you come across some good ideas for safe storage.

[Anonymous]

I’ve posted my strategy before … but I’ll repeat it for those interested.

I’m not really a gloom and doomer. I believe things in the U.S. are on a downward trend (housing is screwed for at least 5 years). Still, I like diversity and like the Coffeehouse portfolio. I altered it a bit to fit my gut feel for the markets.

15%-20% in a REIT fund (vgsix) … they’re still doing well. I had 20% of assets here but sold off some – down to 15%

10%-15% in gold (vgpmx and gld) … I did good here with vgpmx the last 3 years

10% in international (vgtsx) … I did good here too

30%-40% in stocks (vfinx, vivax, naesx, visvx) … spread the risk

25%-30% in bonds (vbmfx) … nothing great happened here for me, but I didn’t loose anything either

5% in cash (money market) … lost to inflation here, but oh well …

And lastly, I’m redistributing and adding some new cash to vgenx for a long term play (10 years or more). With China and India in the mix, I believe energy is only heading upwards for a long time to come.

[powayseller]

jg, Please let me go, your hatred and obession with me is kind of freaking me out. When I pop in your head, could you please think of your glittering beautiful gold and your Saviour and think peaceful thoughts. Thank you.

[powayseller]

SDAppraiser, bear market funds info is available on the internet. You and I won’t be exchanging information about our financial investments, bank account passwords, or results of our physicals anytime soon.

Clients of stockbrokers, retirement fund managers, financial planners, and investing bloggers (Big Picture, Don Harrold) should aks for, and receive, the professionals’ investment returns. If their past returns are lousy, there should be a story of knowledge gained that would improve returns in the future. Most clients are too afraid to ask. Don’t be. Demand to know, and don’t invest with anyone who refuses to tell you, or who gets mad/defensive about your question. Chris Johnston and Zeal post their returns on their websites. You ought to demand the same from anyone who manages your money.

The guy from the gym who’s got $ 1 mil under management does not even know his advisor’s own history of returns. When I asked him, twice, he changed the subject and was clearly uncomfortable.

[truongphu]

HeavyDuty, in your opinion, how much one loses to inflation when having money in 5% return money market saving accounts ?
also, it looks to me that for the past 2 years, the bond index did not gain more than 5%.

thanks.

[Author]

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