Is Gold about to drop Hundreds of Dollars?

genememe

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It doesn't hurt to own a small amount of gold.

But as a long term investment for passive income, index funds are the only way to go.
But you need to avoid obsessing over the fluctuating monetary value of your portfolio.

Whether the market goes up or down, by owning index fund ETFs you'll still own a stake in income producing blue-chip firms that make their money selling real goods and services (well, for the most part).
They're a safer investment than property and they have the added bonus that anyone can start buying them, even those on low incomes.

Instead of setting yourself a monetary goal, which encourages short term speculation, set a nominal goal based on the number of ETFs you would like to acquire by a certain date.

Partially hedge your portfolio by buying deep out of the money put options, and when the stock market crashes simply buy more ETFs and keep buying them. Instead of framing it as "oh no the value of my portfolio is way down" frame it as "great, I can now buy more income earning ETFs for less money".

Just my personal take on the matter.
 

genememe

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Oh yeah, reinvest every penny of your dividends into buying more ETFs.

Compound continuously.
 
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Tadhg Gaelach

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It doesn't hurt to own a small amount of gold.

But as a long term investment for passive income, index funds are the only way to go.
But you need to avoid obsessing over the fluctuating monetary value of your portfolio.

Whether the market goes up or down, by owning index fund ETFs you'll still own a stake in income producing blue-chip firms that make their money selling real goods and services (well, for the most part).
They're a safer investment than property and they have the added bonus that anyone can start buying them, even those on low incomes.

Instead of setting yourself a monetary goal, which encourages short term speculation, set a nominal goal based on the number of ETFs you would like to acquire by a certain date.

Partially hedge your portfolio by buying deep out of the money put options, and when the stock market crashes simply buy more ETFs and keep buying them. Instead of framing it as "oh no the value of my portfolio is way down" frame it as "great, I can now buy more income earning ETFs for less money".

Just my personal take on the matter.

ETFs are handy, but not fool proof by any means - as this long list shows,

 
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Tadhg Gaelach

Tadhg Gaelach

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Gold price in last crisis seemed always related to economic fear.

They say that in a crisis there's a hierarchy of money:

1. Gold
2. US Treasuries
3. US Dollar

Japanese Yen would be forth I suppose. Swiss Franc is not what it used to be. The Euro still gets safe haven bids though.
 
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Tadhg Gaelach

Tadhg Gaelach

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“The unemployment rate usually rises ahead of a recession, so a fresh decline pushes out the timeline for any potential recession into late 2020 at the earliest,” said Josh Wright, chief economist at iCIMS in New York.

 

genememe

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I don't want to drag this thread too far off topic, but in addition to index funds, it's also a good idea to look into ways of building income earning assets that require a time investment rather than a monetary one.

A niche site is one such method.
Even a mediocre one will earn some passive income.

And even if you just spend half an hour each evening writing blog posts, you could slowly build them up over time and end up with a portfolio of sites.
They typically sell for 15-20 times their monthly earnings and if you neglect them they'll still generate revenue -- albeit slowly dwindling -- and cost very little in terms of hosting.

Here's a way to line up your ducks: instead of relying solely on your wages to invest in index funds, turbo charge it by reinvesting what you make on your site(s) into buying them.
 

Schwarzkunst-Zauberlei

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Seems like a joke to type this from a computer, but the amount of digital investment scams probably make up a considerable amount of state debt, and these, preferably, should be regulated.
 
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