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Take risks with your career, not with your money

<div style="text-align: justify;">Some good advice from Permanent Portfolio advocate <a href="http://www.crawlingroad.com/">Craig Rowland</a> in <a href="http://www.bigfatpurse.com/2012/06/championing-the-permanent-portfolio-as-a-fail-safe-investment-strategy-craig-rowland/">this interview</a> with blogger Big Fat Purse:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>"I believe people should take the risk in their career and not take risks with their money."</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you are young, <i>"I would say for you, invest your money conservatively and go out and try different jobs. Try to start a company, try to start your own business, try that crazy idea that all the experts say will never work, try to build these things, take your risks in your career because you’re young enough and you can recover from that experience. This is a lot opposite from investment books. A lot of investment books encourage a lot of risk-taking in stocks when you’re young. But the thing is, if the bet doesn’t work, your savings are not going to grow."</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>"I tell people to be conservative with their money and take risks in their career and try to build wealth that way. And if they don’t want to take risk in their career I understand that too. There are people who don’t want to, but at the same time don’t assume you can replace your money. I think most people will be better served with a stable portfolio that’s not swinging in value because when it starts swinging in value, your emotions are going to get in the way and you’re going to make bad decisions."</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The <a href="http://crawlingroad.com/blog/2008/12/18/the-permanent-portfolio-allocation/">Permanet Portfolio</a> is:<br /> <br />25% – Stocks (S&P 500 Index)<br />25% – Long Term US Treasury Bonds<br />25% – US Treasury Money Market Fund<br />25% – Gold<br /><br />and <i>"designed to weather a wide range of economic conditions (prosperity, inflation, deflation, recession) to protect and grow your money."</i></div>

Some good advice from Permanent Portfolio advocate Craig Rowland in this interview with blogger Big Fat Purse: "I believe people shou...

BIS says gold is a currency, not a commodity

<div style="text-align: justify;">From the Bank for International Settlements <a href="http://www.bis.org/publ/bcbs128.pdf">International Convergence of Capital Measurement and Capital Standards</a>:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Page 179</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“Gold is to be dealt with as a foreign exchange position rather than a commodity because its volatility is more in line with foreign currencies and banks manage it in a similar manner to foreign currencies.”</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Page 182</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“718(xLiii). This section establishes a minimum capital standard to cover the risk of holding or taking positions in commodities, including precious metals, but excluding gold (which is treated as a foreign currency according to the methodology set out in paragraphs 718(xxx) to 718(xLii) above). ... The price risk in commodities is often more complex and volatile than that associated with currencies [ie gold] and interest rates. Commodity markets may also be less liquid than those for interest rates and currencies and, as a result, changes in supply and demand can have a more dramatic effect on price and volatility.”</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Who's to argue with the eggheads at the BIS? Well, a lot of financial market people who hate gold always call it a commodity, which hides its special nature.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Any commodity with around 60 years of above ground inventory would have a price close to zero. The fact that gold has a price tells you it is not a commodity.</div>

From the Bank for International Settlements International Convergence of Capital Measurement and Capital Standards : Page 179 “Gold is to be...

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Take risks with your career, not with your money

BIS says gold is a currency, not a commodity

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