PM Stock Indices going RED !
GDXJ…red
SIL..red
SILJ ….red 3%
This is outrageous
I do not share the rosey picture many are painting of the PM Stock as a way to riches
Gold and Gold Only is a sure thing
sheesh
GDXJ…red
SIL..red
SILJ ….red 3%
This is outrageous
I do not share the rosey picture many are painting of the PM Stock as a way to riches
Gold and Gold Only is a sure thing
sheesh
A warning sign that the top might be in?
That’s why physical gold should have a bigger part in portfolio than mining stocks. At current gold price mining stocks are only slightly undervalued (10-15%). If gold price goes to 2000$ or 2500$ you will get the additional leverage of 2-2.5 times more return, but have to accept the added volatility and risk of bad management (underperformance), currency fluctuations, country risks, inflation risks (remember AEM seeing costs pressures of 4% in Canada).
Good Points Alex ….But….when was the last time we have seen 2 to 2% leverage in PM Stocks ?
It’s a Myth
Fully, since May 2019, if I am correct for every gold 1% move, GDX went up 2.5%, but only from bottom to top of Interim Gold Cycle. If we take May 2019 till now, gold is up 29% and GDX only 55%. So leverage less than 2%. I guess this is more realistic as the from Interim bottoms to tops GDX always goes up far faster than gold, but loses part of that performance in any subsequent correction. Maybe in the long term GDX leverage is only 1.5 times, thus hardly offsetting all the risk you take!
“This is outrageous”….really? this is what always happens.
If you recall 2008 wasn’t rosy for gold and miners either but it was eventually realized. Although miners never quite saw the payday they did a few years earlier. Hoping this time the money has to flow somewhere, there is soooooo much of it.