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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Gogo who wrote (42356)	4/21/2011 11:24:01 AM
From: Jurgis Bekepuris	Respond to of 78516

Exit strategy? We don't need no stinking exit strategy! We gonna give each university graduate a gold pin or something. Reminds me the story about how Harvard endowment got "great" returns by buying illiquid "assets". It was all wonderful until 2008 hit. And then things got dicey... huffingtonpost.com But surely their oil holdings have recovered by now... maybe... or maybe they gave an oil barrel to each graduate. ;) Some other graduates got wood ... and they felt shafted ... :) - OK, I just had to say it. ;)

To: Mr.Gogo who wrote (42356)	4/21/2011 12:45:36 PM
From: E_K_S	Respond to of 78516

The only thing I can think of is they plan to set up their own ETF type fund based on the "hard assets" they hold in the vault. They can generate income for the pension and at the same time have the hedge against a falling $US. Who know, some management adviser may have talked them into such a strategy. I wonder how many other large institutions are looking at the delivery option? I think if we see much more of this, it may be getting into bubble territory. For now it does raise my attention because this is the first I have heard regarding physical delivery of this size. EKS

To: Mr.Gogo who wrote (42356)	4/24/2011 7:24:49 PM
From: Madharry	Read Replies (1) \| Respond to of 78516

this represents about a 5% portfolio position. my guess is that they anticipate holding that % more or less intheir portfolio and will most likely rebalance periodically. To me it means that there are new increased long term demand for gold, and now possibly silver. I love how all the people who didnt think it was worth buying at $600 are so quick to offer an opinion that its time to be cautions now that its above $1500. I dont think anyone is qualified to offer what will be an equilibrium level for either gold or silver at this point. I can only tell you that I had an opportunity to purchase some silver bullion at slightly below spot rates recently, mentioned it to a few of my friends. No one showed the least bit of interest in it. My wife asked me why I was buying it as well. She was only slightly mollified when I told her that I was already making a profit on it. If I get all I ve requested it will be about 100 ounces. so we werent talking real big numbers here. I think that when interest rates start to rise even more people will switch some of their portfolio to gold and silver. especially the baby boomer generation who have most of their future income stream as some combination of bonds, social security and fixed annuities, in other words very little protectoin from either inflaton or dollar devaluation. most of the retirement literature that ive read seem more concerned about recurrence of a severe dollar decline than inflation and dollar decline. Now I see people are retiring at 65 and they can expect to look forward to 25 years of inflation and dollar declines so how does a portfolio of 65% dollar denominated bonds and 35% stocks help them? even if you own your own house you still need to pay all sorts of variable costs that keep rising with inflation unless you happen to live in an area that fixes property taxes at a certain age.