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dudemonkey (53.73)

Where are the "All In Gold" investors?



November 12, 2009 – Comments (4) | RELATED TICKERS: AU

It seems like every day brings a new person, be they CAPS players, financial "journalist," or investor, who talks about the inevitable runup in the price of gold to ($2000, $5000, $infinity).  The articles and blogs go on and on about how you are (lowercase) foolish to not have a portion of your portfolio in gold.  I've seen recommendations that you should have between 10 and 20 percent of your net worth in gold.

If people are so sure about this, where are the "all in" gold investors?  I haven't seen too many people say "my portfolio is 90% gold."  Diversification is fine if you're a passive index investor with no interest in learning about security analysis, but the gold investment community seems to have spent a lot of time thinking about this and yet I'm not seeing the kind of surity that I'm seeing among stock investors.  No one ever got wealthy because of something that happened to 10% of their portfolio.

This isn't a challenge, and this isn't a knock on the gold investors.  They seem to be pretty sure of what they're talking about, but my suspicion is that their commitment to their thesis isn't what I would expect from people who are advocating buying a gold when its price is at or near an all-time high.

Are there any "all in gold" people with a focused portfolio of gold?  Even Jim Rogers isn't, to my knowledge.  What about Marc Faber?

4 Comments – Post Your Own

#1) On November 12, 2009 at 10:20 AM, 100ozRound (28.69) wrote:

I'm "all in" with my personal account - not my 401k though because of the nature of the funds in my plan.

And when I say all in, I mean that I'm all in metals and miners.  I'm diversified between gold, silver, and copper miners - not just gold.

In addition, I'd say about 25% of my overall portfolio is in physical silver...

So when you say "gold", I interpret it as a blanket term for precious metals....


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#2) On November 12, 2009 at 12:00 PM, ChrisGraley (28.62) wrote:

I wouldn't say I'm "All In" in real life, but I'm heavily invested in metals.

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#3) On November 14, 2009 at 10:33 PM, ozekijung (< 20) wrote:

Many articles state that gold has no industrial uses but one question I have not seen many discussions about why do all of central banks around the world have tons of gold reserves. Why do they keep this stuff. The USA supposedly has the most gold that any other country why not just sell it and get rid of it.

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#4) On December 07, 2009 at 3:49 PM, sentinelbrit (57.37) wrote:

Gold goes through long term bull and bear markets and we are currently in a 9 year bull run. This is the longest winning streak since 1948. And I gather in real terms, gold is near its peak. I've seen predictions that gold will get to $2000 an ounce in the next decade from Jim Rogers. Gold is great when it is going up but woe betide the investor who gets caught long at the peak!

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