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Market Go Boom! 3/24/23


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22 minutes ago, DrStool said:

I know a guy. 

I know a thousand spots in my yard where I could dig a hole.

I could hide 100 1-ounce gold coins in different places in my house: distributed security. Make a google doc with their location, because my aging mind is a sieve. Hypothetical thieves come in and find some of them, but certainly not all.

100 coins = ~$200K.

If you are making thereby a 5% allocation to physical, it assumes a net worth of $4m.

Assume $1m of that net worth is equity in a California home.

Assume the remaining $2.8m is the classic split 60-40 in equity & bonds.

That assumes an equity portfolio of $1.68m.

The $200K in physical is "worth" a 12% drawdown in that equity portfolio.

There is risk of loss & there is risk of loss....

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We lived in San Francisco near Fisherman's wharf with a 2 year old and a 3-month old. Our region is notorious for earthquakes, and as certain as night follows day, eventually, the entire freaking region is going to come tumbling down when The Big One strikes. Our family just suffered through over 50 hours without power & heat because... there was a winter storm. It is not the first time we've lost power for an extended period and it won't be the last (although I am working on a contingency for next time...).

Had the Big One hit while we were with 2 young children in the city, our plan was to take our gold coins down to the wharf and/or yacht club and seek to purchase any boat the hell out to somewhere outside the wreckage zone - and make our way to family in SoCal. With our family in tow, a five-figure one-way trip would have been inconsequential. I lived through the 1989 earthquake here, and I was trapped overnight in downtown LA during the Rodney King riots.

California can turn on a dime: I've seen it and I've lived it.

Gold coins may not solve all problems, but when the chips are down, and there's no electricity to feed ATMs, I want some for the contingencies I cannot even imagine. 

There is risk of loss... and there is risk of loss.

 

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A friend of mine call me and ask about gold online vaults (BTW this call speaks about temperature around gold I guess).

I was not using that for quite some time (like 10 years). Which one is the best for European?

I was using several years ago, maybe decade, Bullion vault (registered in UK). Any better right now? (website https://www.bullionvault.com/)

 

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WE ARE STILL IN NIRP LAND

So many people act like we have left NIRP land far behind.

We have not.

Real rates still negative.

The FED printed to keep us in NIRP land.

Not to get us out of it.

If the FED does'nt print anymore we will eventually get out of it.

But today's rates are appropriate for RIRP land with NO printing other than for GDP growth).

(That's real interest rate policy)

The FED stopped printing when it all became just too crazy on the capital misalocation and inflation  fronts.

But they stopped far too late.

Now the massive capital misallocation ponzi's are being unwound.

It's not pretty

Not pretty at all.

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