Really? .... this is less than a rudimentary understanding of gold, which in the modern world has many forms. Ie. ETFs, GLD, Physical etc...
Yep definitely. But you can cherry pick time frames to show just about anything.
The last 2-3 years have been very average for Gold stocks and the last 12 months shockingly poor. I exited most of the stock positions I held in my personal account back in 2011, but kept those in my Super and have probably seen the the average of them fall 30% from peak. But they are only a small % of overall portfolio, I've added to a couple as they've declined.
I would suggest revisiting their performance in 12 months time (Gold vs Gold Stocks) as based on measurements over the last decade Gold stocks reached the most undervalued point in the bull market yesterday (as a ratio GOLD:XAU) as panic selling set in, so good chance they will outperform Gold "on the next big run which I'm expecting will start this year:
https://twitter.com/bullionbaron/status/304379910452035584
"Talk about quoting my posts out of context.I find it odd that you exited most of your stock positions in 2011 and here in May/June 2012 you are pumping up gold stocks with quotes such as
"The environment we have today is every much as bullish for Gold as we've seen over the bull market."
"I there is a good chance we've bounced off a significant bottom which may be the lowest price we'll see before the end of the bull market."
"It's not too late to be onboard
"there are many oversold miners with good cash flow and large reserves"
An investor who bought a an ASX200 tracking share such as STW would have turned $100,000 into $128,000(incl. Divs) where as an investor who spread $100,000 over your gold shares would now be sitting on a paltry $66,400, needing a 100% increase in share price to catch up.
Suggest you also have another look at your peak to trough range, not 30%, more in the vicinity of 50%, you would again need to double the share price just to break even.
" <- This was about two weeks after the bottom in Gold/Silver.The first 3 quotes were clearly about the price of Gold, not Gold stocks.
A. "The environment we have today is every much as bullish for Gold as we've seen over the bull market." <- It was, it still is. Doesn't mean instant rally (although we did see . We were/still are working off one of the largest moves higher in the metals in the bull market to date.
B. "I there is a good chance we've bounced off a significant bottom which may be the lowest price we'll see before the end of the bull market." <- Reference to Gold/Silver after they had bounced off $1525/$26 respectively. They haven't been that low since.
C. "It's not too late to be onboard
D. "there are many oversold miners with good cash flow and large reserves" <- This was paraphrasing something sunfish had said. But I do think there were oversold miners then as now.
Nowhere did I suggest anyone spend $100k on Gold stocks.
Not at all, it's just the way you are extrapolating a small portion of my portfolio from higher prices than I purchased is deceptive and underhanded. Especially when bringing it up specifically on the lowest day gold stocks have been sine 2008. How about you revisit those share prices in 12-18 months and see how they are doing compared with stocks? Yes broader market has outperformed gold stocks over last 6 months, are you saying you bought STW 6 months ago? Are you saying the broader stock market will continue outperforming gold stocks? Would it be fair to revisit your position in STW on a day I see it's doing particulalry poorly?
