Replies to post #5327 on Mining Sector Ideas

[bigworld]

gfp: I have about $250K in cash at this moment from the sales of the UVXY shares. I plan to put about 50% of that into SILJ and 25% into GDXJ and 25% into GOEX. There is some overlap in holdings between all three. No matter what happens in the short term in the intermediate to long term I don't see a better allocation of capital anywhere. Fiat currencies are going to continue to erode in value. Some (like ours, the Pound and the Euro) faster than others. The Swiss franc might be the only currency I would own as a store of value. I don't own any because the miners should outperform the spot prices of the metals by at least 2:1. The general investing public still have little or no exposure to precious metals. They are still overweighted in stocks in their 401K plans and individual portfolios. I know a lot of people I work with who are financially illiterate and have all their 401K money in one of the Target date retirement portfolios which just change the allocation of large cap stocks and government and corporate bonds as you get closer to retirement age. And we have seen in the recent past that both can go down simultaneously. I know I am an outlier having about 70% of our portfolio in bullion and mining stocks. I just don't see a viable alternative. Real estate is so dependent on location and the local government that I will stick with just the house we live in. Can you imaging being a landlord in New York City. Mandami will push for more and more rent control while boosting property taxes significantly. Other costs continue to go up. Yet the landlord can't raise rents enough to cover the increased costs. So maintenance is deferred. Properties deteriorate. Some renters of single family homes will ultimately sell to permanent owners taking the unit out of the rental market altogether. And buying and selling of real estate is expensive and time consuming. I know a lot of millionaires made their money in real estate. It's just too much work for me with too many variables that could go against you.