Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

December 30, 2018 | Gold Mining Stocks Are Going Up Faster Than Gold

John is author or co-author of five books, including of The Money Bubble, The Collapse of the Dollar and How to Profit From It, Clean Money: Picking Winners in the Green-Tech Boom and How to Profit from the Coming Real Estate Bust. A former Wall Street analyst and featured columnist with TheStreet.com, he currently writes for CFA Magazine.

The past couple of years have been brutal for precious metals mining stocks. Gold and silver went down a little while the miners went down a lot – four times as much to be exact. That’s painful but not surprising. The miners, being in effect options on the underlying metals, tend to be a lot more volatile.

gold vs gold mining stocks 2016 2018

But volatility works both ways, and starting in November gold began to rise while the miners began to rise more.

gold vs gold mining stocks last two months 2018

With January normally being a great month for precious metals, it’s possible that the miners will be among the best performing sectors for a while. It’s also possible that the outperformance will have legs, as recent financial asset volatility sends capital pouring into safe haven assets.

On a related note, gold’s performance hasn’t been nearly as bad as it’s seemed. Even in US dollar terms, it’s up over the past three years and has returned an average of over 9% a year since 2003.

gold performance gold mining stocks

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

December 30th, 2018

Posted In: Dollar Collapse.com

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.