Which way? Gold.

VolSkewTrader said:
Buffett on Gold:

"If you panicked at the prospects of runaway deficits and a worthless currency" and bought 3.25 ounces of gold with your $114.75. it would be worth about $4,200, or "less than 1% of what would have been realized from a simple unmanaged investment in American business."


"The magical metal was no match for the American mettle."


"In other words, for every dollar you could have made in American business, you'd have less than a penny of gain by buying into a store of value which people tell you to run to every time you get scared by the headlines,"


“(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it."


The Oracle really hates Gold...but loves gold mining stocks? What gives?
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Yeah, interesting subject indeed.
My experience, I only trade gold stocks, not physical gold price, and really it's only a short fleeting window of opportunity, in the past I've struggled with it, but on the ASX there is such a huge number of them, it makes for temptation.
Buffett, I'm no fan of him, choosing Barrick to buy would be due to its large cap, not because it was the best performer among all gold stocks.
But the gold stocks outperform the price of gold nearly every single time.
Here's 5 year chart, XAUUSD vs GOLD (Barrack stock symbol [in green]).
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themickey said:
Yeah, interesting subject indeed.
My experience, I only trade gold stocks, not physical gold price, and really it's only a short fleeting window of opportunity, in the past I've struggled with it, but on the ASX there is such a huge number of them, it makes for temptation.
Buffett, I'm no fan of him, choosing Barrick to buy would be due to its large cap, not because it was the best performer among all gold stocks.
But the gold stocks outperform the price of gold nearly every single time.
Here's 5 year chart, XAUUSD vs GOLD (Barrack stock symbol [in green]).
View attachment 237558
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Win big and lose big on mining stocks. They've got big betas relative to spot gold. You like the big caps (Barrick, Rio, BHP, Newmont, etc.) or small caps in this sector?
 
VolSkewTrader said:
Win big and lose big on mining stocks. They've got big betas relative to spot gold. You like the big caps (Barrick, Rio, BHP, Newmont, etc.) or small caps in this sector?
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I tend to buy mid caps at the beginning of a new trend run then migrate to small caps and microcaps as the trend progresses.
Currently I'm only holding a couple of small caps and several microcap gold explorers in the gold sector.
Don't tell me its risky :) - I know that, :) but I do a reasonable amount of research before playing the game. Hehehe.
 
themickey said:
I tend to buy mid caps at the beginning of a new trend run then migrate to small caps and microcaps as the trend progresses.
Currently I'm only holding a couple of small caps and several microcap gold explorers in the gold sector.
Don't tell me its risky :) - I know that, :) but I do a reasonable amount of research before playing the game. Hehehe.
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I like risky stocks too, as long as there's big reward. I missed the boat on miners back in March. I bought a decent amount of the GLD ETF last fall. If we get a nice correction, I'll look for some bargains in the mining/gold exploration sector....maybe put a low bid in GOEX if it gets below $25.
 
I don't have the stomach for the gold stocks. They keep moving in sympathy to the stock market.

I do think the commodity has already corrected. I am in FOMO mode now. 2400 by EOY. Yep, crazy.
 
xandman said:
I don't have the stomach for the gold stocks. They keep moving in sympathy to the stock market.

I do think the commodity has already corrected. I am in FOMO mode now. 2400 by EOY. Yep, crazy.
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So you don't have a stomach for gold stocks???
How's this for an announcement today, (Silverlake Resources SLR.AX) with our ASX mkt opening in approx 15 minutes....
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upload_2020-8-19_7-47-37.png
 
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