Loading ...Miners vs Gold
It seems like investors do not believe miners can not be outperforming gold or silver.
I have 2 periods in mind however this was the case:
-1976-1980:
and more recently
-2008-2011 where miners did not outperform and even slightly under performed (see graph below) the metals.
The difference with current period of course was that in both previous periods, it was the final upswing in metals and maybe the market already discounted metal top ahead, who knows.
This time it could be different as miners are very cheap based on P/NAV (0.60) vs historical average of 0.9-1.1 and we are only at the beginning of the gold bull market.
Thanks for these Alex. History can teach us many lessons. Something is brewing.
I would advise for investors loosing confidence, focus on the senior and Midcap producers that have free cash flow increasing the next years like AUY, KGC, AEM, GG, IAG, SSRM or even ABX. Midcap names I like are EDV, ROXG, BTG, LMC, AR or NGD. Nem is good too, but rather expensive. Junior miners I do like VERY much, but all depends on management execution and project size and grade. Difficult to pick favorites.
I AM NOW OF THE MIND TO JUST PICK AN ETF…AND FORGET ABOUT COMPANY PICKING…EVEN THE BEST PICKERs , PICK LOSERS
EASY TO BUY EASY TO SELL
gdx gdxj sil silj xgd.to xjg.to ….1 timers….
For me 3Xer and 2Xer and individual miners have been difficult …and I am sure most feel the same way
If we get an impulse just ride these things…sell em at resistance and buy support and breakouts. I am jaded wrt all other PM vehicles
I believe this is a very good strategy, although personally, I prefer to have the company itself in my portfolio. If you buy an ETF, you have everything together with South African names too. An ETF like GDXJ however is certainly a nice vehicle to play any upturn in markets as you have a nice geographical diversification. Regarding company pickers, most are very promotional and always do your own due diligence!! I have been subscribed to 2/3 gold newsletters like Maven letter/HRA/Junior mining Junky. All were very good read and provided me with good info, but at the end I had to made the final decision. I never follow an investment writer portfolio, because we all have different investment styles. I like to take big risks with small amount of money and the rest I invest in mid market producers. And to be honest, most of Vancouver listed companies are more serving the management through high salaries than the shareholders. So you have to be VERY CRITICAL when looking at juniors.
agree,if your pick is in the etf then she go down with the ship anyways, perhaps a pick out of the basket but still risky. Definitely tiring us out and better things to do instead of screen watching all day.