Hello Pezz, Today’s Report:
(i) I am intending to have a light weekend. The usual, starting with American junk food Starbucks Ice Mocha Frappucino, Chinese healthy reflexology session, walks about, lovely lunch, comfy naps, dinner with friends, reading to daughter, a DVD movie (“Gamer” youtube.com ), and, naturally, contemplation on the state of is. I will also squeeze in a bit of necessary and genuine work, so as to reduce my workload during the coming week that involves travel to Beijing, to give away some gold coins to counterparties per tradition of lunar New Year holiday spirit. Chinese Asia will shut down for holidaying starting one week before February 14th, and would not get revved up until 7 days after February 15.
(ii) I am now stanced so, after accounting per inclusion of new savings and mark-to-market of physical and paper metals with some sandbagging (usd 1k/oz for au, 1.4k for pt), valuing rental at lower of cost and market, and removing from consideration off-balance sheet gold that belongs to daughter (adds 1700 basis points to physical metals)
Cash 6.6% (cad @ 6.0%, hkd/usd 0%, chf/rmb @ 0.6%)
Pt/Au 39% (43% physical w/ 49:51 split on pt/au, with inconsequential ag in all forms)
Bonds 2.1%
Rentals 39.1%
Equity 13.2% (3.6% energy, 4.5% au, plus whatever, inclusive of short covered calls on gdx)
And have ready 1:1 financing to establish leveraged positions in pt/au/equities, or deploy to rentals should values crumble.
The above looks and feels like a full position, and it is, even as gold and platinum are more money-like than equity-like. I am firstly playing any gold drubbing by copvered calls on gdx, and am prepared to play by massively shorting gdx puts when opportune. I am not prepared to short gold.
(iii) In hindsight, it may have been for the best that I had not made up my mind on what the year would serve up in terms of ramping this and tanking that. I suspect lots of loot could be available for extraction from the markets via puts and calls, and especially so from the gold complex.
(iv) I do not believe interest rate will ramp or that central banks will stop quantifying, but I am sure that at times the market will believe in anything. We are blessed.
Cheers, tj |
