Rational arguments for selecting precious metal investments
Not many investment experts even consider precious metal mining. Those that do often are tacit about their stock selection rationale. The price performance of most precious metal mining funds or ETF’s lag that of the metals, moreover with a far higher stock volatility. It seems to be the worst choice possible.
So far, these ideas corresponds to many of the articles on this blog:
- Oversold miners; Lagging gold (Aug 30, 2021)
- Long term performance of Gold Miners (Apr 24, 2018)
- Gold miners persistently lagging the metal (Feb 12, 2018)
- The bear market logic for gold miners: Continuation and Analysis (Jul 24, 2015)
- Gold miners: three decades for naught (Jan 27, 2015)
- Decades of underperformance (Feb 2, 2011)
Presently, I wish to introduce the investment rationale for precious metal stocks as presented by Lyn Alden in an introductory article for her investment letter (dated early 2020, hence before COVID crisis and long before the gold all time high).
- A first graph proves VanEck’s GDX mining ETF to lag the broad US stock market as represented by the SPDR S&P500 ETF.
- A second graph, comparing VanEck’s GDX mining ETF to the GLD (unleveraged) gold ETF is confirming the above.blog articles: GDX consistently lags GLD.
This is a solid argument as to be very picky when selecting precious metal stocks. A ‘wide and balanced’ mining portfolio will tend to lag precious metals, much like GDX does.
Investment rationale
Evaluation after 2 years
Source: https://gwyde.blogspot.com/2022/01/rational-arguments-for-selecting.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).