"Everything you need to know about gold"
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES
No amount of wishful thinking and baseless proclamations will change that. Owning gold stocks (miners) instead of the actual physical metal (in other words, processed and refined with appropriate hallmarks and in tradable form) is a losing bet. Investors should ignore the siren song of gold mining shares.
GOLD STOCKS VS. GOLD
The long-term underperformance of gold stocks compared to gold itself is clear and indisputable. A matter of remaining contention is whether or not beleaguered investors in the not-so-shiny metal stocks will ever recover from more than twenty years of disappointing and largely negative results. It isn’t just the poor relative performance, though; holding gold mining stocks has been a losing proposition in its own right.
Below is a chart which shows the relationship of the HUI (NYSE Gold Stock Index) relative to the price of gold…
When will people wake up to the fact that investing in gold mining shares is not a good idea?
What are the experts seeing and thinking when they talk about the “positive outlook for mining shares”? For the life of me, I just don’t get it.
And, as far as gold stocks outperforming gold, well, just forget about it.