If you want an element to remain in its static position (where it would normally be if it were not positioned) but simply take it out of normal flow, simply specifying position: absolute
is perfectly acceptable. The behavior is as described in sections 10.3.7 and 10.6.4 of the spec, and every browser behaves correctly.
You aren't required to give it any offsets if you don't want to move the element from its usual static position, and you aren't required to relatively position its parent element if you're not going to move the element anywhere since it'll remain in its static position anyway.
I just looked at your code again and noticed that you're applying percentage padding to your absposed element. You will need to relatively position the parent element if you want the percentage padding to be calculated based on the width of this parent element and not the initial containing block (where the root element resides):
#parent{
position:relative;
width:50%;
margin:10% auto;
background:gold;
height:20%;
}
Compare this fiddle with the original.
So, the main purpose of relatively positioning some ancestor of an absolutely-positioned element is for designating its containing block. Sections 9 and 10 have most of the gory details on the interactions between elements and their containing blocks. Depending on your layout you may not need to position anything else at all, however if your layout is complex enough you may find that there are side-effects resulting from whether or not you position any container elements, and which one you do position. I suspect the topic of containing blocks could be covered in a different question since it may very well be out of scope of this one.