I was reading that government was collecting the gold from people under treat of putting owners for ten years to prison. Did it really happened? And what kid of gold was collected? Personal jewelry, collector coins? What about platinum, silver and palladium?
OTM index puts in SPX, OEX, SPY or ES, whichever looks cheapest and whichever you can get on the bid. Don't worry about the correlation between ER2 and any of these, in a sharp disaster-related downspike, the correlation will go close to 100%. Long index puts have a negative mathematical expectation -- best-fit-to-market-data jump-diiffusion paramerrs indicate option traders overestimate downspike frequency by 50% or more and magnitude by at least 25% -- but that is the price you will pay for the insurance. If your portfolio consists mostly of your long ER2 trades, your expected portfolio log return will almost certainly be improved (greater terminal wealth).
============ Good question MAL; 1]Diversifiction, like location, location, location; & diversification in time 2] Storehouse Tithe 3] Since you said something like 80% long; include something short for sure . Also wouldnt aim at a perfect hedge, since i dont buy ''no deductable'' insurance either. 4]Think/work with the idea on, for example1 long contract ES, you borrowed about $70,000/per contract, so to speak. 5]Bottom line= err on side of caution, cause suprise rate cuts have hurt shorts before.