Portfolio
John Budden’s Dog Bone Portfolio focuses on precious metals and is designed to preserve wealth and maintain one’s purchasing power through Kondratieff Winter. We aim to weather countervailing inflationary and deflationary forces and survive competitive devaluations during surreal geopolitical uncertainty over the next ten years. Portfolio weightings and holdings depend on personal risk tolerances and investment objectives. In any event, investors should consider having at least a sleeve of precious metals in their portfolios as insurance against the inevitable devaluation of fiat currencies and inflation and as a cash alternative. The Dog Bone Portfolio is precious metals-centric because we are on the cusp of a reset in all paper currencies.
Bonds and paper money promises by governments are no longer trustworthy; in most instances, they are worthless.
“Gold is money; everything else is credit.” – J.P. Morgan
Securities should be chosen with advice from a qualified registered investment advisor.
July 16, 2024
Overview:
A ‘Perfect Financial Storm’ is brewing, thanks to political clowns and desperate central bankers whose only option is to print fiat currencies, augmented by a debt and derivatives accident waiting to happen, including ever-increasing and horrific geopolitical risk.
We aim to preserve purchasing power and sleep soundly through Kondratieff Winter, which should last into the 2030s.
Déjà vu all over again? Reference the 1970s Bull Market in Gold and the one that evolved directly from the post-GFC stimulus binge from 2008 to 2011.
From March 17, 2008, to October 24, 2008, Gold declined, in tandem with the general stock market, from $1011.25 USD to $712.50 USD, based on the London Gold PM Fix (USD).
Then, the FED and significant central banks opened the floodgates and Voila!
Gold bullion increased by 140% to $1895.00 (USD) by September 5, 2011.
Currency Wars have begun in earnest. We are in the ninth inning of U.S. Dollar hegemony, and very few investors understand what this means for markets.
Don’t be fooled by the Devaluation Bull Market phenomenon.
The Dog Bone Portfolio Club’s 2032 Investment Strategy:
Very Defensive and Risk Averse…
We aim to be able to sleep soundly through the financial storm.
Stock Market Action:
I wasn’t around in 1929, but this reminds me of 1974 (Nifty Fifty), 2000 (Tech Wreck), and (GFC) 2008. The unwinding will be much worse this time, and the recovery will take much longer.
After rereading James Grant’s biography of Bernard Baruch, I am reminded that current investor behaviour is similar to that in 1929.
I fear that there will be widespread credit defaults followed by global competitive devaluations that will echo the Weimar Republic era.
Plus ça change, plus c’est la même chose…
The Dog Bone Portfolio:
Cash ~ 0%
Bonds ~ 0%
***************************
Equities ~ 0%
***************************
August 20, 2024
DOG BONE PORTFOLIO SPECIAL SILVER BULLION ALERT:
In 1970, the average closing price for an ounce of Silver was $1.77 USD.
By January 1980, Silver had reached $50.00 USD an ounce.
We appear to be on the cusp of another generational bull market in Gold (real money) and Silver (walking around money).
The Dog Bone Portfolio consists of 60% Gold bullion (stored off the banking grid) and 40% Silver Bullion (stored off the banking grid) at the Royal Canadian Mint (RCM).
Precious Metals (Bullion) ~ 100%
THROUGHOUT RECORDED HISTORY, GOLD AND SILVER BULLION HAVE ENDURED AS REAL GLOBAL TRANSACTIONAL MONEY WHEN ALL FIAT CURRENCIES HAVE FAILED.
GOLD AND SILVER PROTECT ONE’S PURCHASING POWER THROUGH WARS, STAGFLATION, INFLATION, HYPERINFLATION, DEFLATION, DEVALUATION, DEBT DEFAULT AND STOCK MARKET CRASHES.
*************************
Gold Bullion ~ 60%
(60%) Kilo Bars – Stored at the Royal Canadian Mint.
A minimum of $3 million USD of Gold Bullion is required to qualify for Royal Canadian Mint custody.
Alternatively, Sprott Physical Gold Trust, listed on the NYSE Arca, (PHYS $US) BEST LIQUIDITY.
Also, TSX: (PHYS-U.TO $US), and TSX: (PHYS.TO $CA).
The Sprott Physical Trust’s Gold Bullion is custodied by the Royal Canadian Mint to minimize counterparty risk.
Established in 1908, the Royal Canadian Mint is internationally recognized. I believe that the government of Canada will respect the Royal Canadian Mint’s independence because the mining and refining of gold and silver bullion is vital to the Canadian economy.
Also, the Royal Canadian Mint Gold ETF TSX: (MNT-U.TO $US), and TSX: MNT.TO $CA) CHALLENGING LIQUIDITY.
Precious Metals: Bullion, Coins and Wafers 
*************************
Silver Bullion ~ 40%
(40%) Sprott Physical Silver Trust, listed on NYSE Arca USD (PSLV) BEST LIQUIDITY.
TSX: (PSLV-U.TO $US), and TSX: (PSLV.TO $CA).
The Sprott Physical Trust’s Silver Bullion is custodied by the Royal Canadian Mint to minimize counterparty risk.
Established in 1908, the Royal Canadian Mint is internationally recognized. I believe that the government of Canada will respect the Royal Canadian Mint’s independence because the mining and refining of gold and silver bullion is vital to the Canadian economy.
Also, the Royal Canadian Mint Silver ETF TSX: (MNS-U.TO $US) and TSX: (MNS.TO. $CA) CHALLENGING LIQUIDITY.
Precious Metals Bullion, Coins and Wafers
Securities should be chosen with advice from a qualified registered investment advisor.
