Ratio Of Gold To Gold Mining Shares?

[crudeFool]

Hi All.

 

In my SIPP, I've now got approx 50K in Gold Bullion Securities (gold bullion) and 15K in Merrill Lynch Gold. So about 25% in mining and 75% physical gold (or as near as I can get via a pension!).

 

What are you thoughts in regard to the ratio of physical gold to gold mining shares? I'd thinking of upping the gold mining ratio to around 35% and 65% bullion.

 

(I also posted this on the HPC forums)

Regards,

crude

[drbubb]

At first, I thought you were speaking about the PRICE RATIO

 

we have spoke about this on other threads...

 

I like to use : HUI-to-Gold and GDX-to-GLD

 

chart ... update

 

The ratio tends to be a leading indicator for gold and gold stocks

 

= =

 

As to the ALLOCATION of my portfolio to: Gold, Gold shares and Cash

===============

 

Presently, I hold no gold, record levels of cash, large put positions,

while continuing to hold perhaps 60% in core gold shares, other resources, and special situations.

 

Yesterday was a big down day in the market, but I made some money thanks to my puts

 

Personally,

I prefer Gold shares to gold, since they typically have more gearing in a Bull market.

I tend to try to trade the swings in Gold, based upon my seasonal and technical indicators.

Over the years, I have massively outperformed Gold this way. But it takes nerves, pin-point timing,

and occasional nail-biting moments. This way of trading is not for everyone.

 

To hear my reasons for being so defensive now, listen to the end October

CW Radio podcast : http://commoditywatch.podbean.com/

[crudeFool]

Thanks for replying DrBubb.

 

At first, I thought you were speaking about the PRICE RATIO

 

My title could have been clearer!

 

I think in my SIPP, I'll up the amount of Merrill Lynch gold shares by selling GBS.

 

 

we have spoke about this on other threads...

 

I like to use : HUI-to-Gold and GDX-to-GLD

 

chart ... update

 

The ratio tends to be a leading indicator for gold and gold stocks

 

Cheers - I'll look into this.

 

To hear my reasons for being so defensive now, listen to the end October

CW Radio podcast : http://commoditywatch.podbean.com/

 

Funnily enough, I was listening to these yesterday at work. I listen to Jim Puplava webcasts early in the week followed by CW radio at the end. Keep up the good work.

 

Regards,

crude.