I prefer less risky miners so I bought GDGB ETF (GDX in sterling) as the market fell. It doesn't have the advantage of a discount but it has larger miners.
I thought the same but when you look at fund performance in previous bull cycles 2016, 2020 etc the smaller producers will outperform in this gold bull which will be much larger than the previous two. It will be tough to lose money in gold and miners over the next couple of years regardless. Currently i've got Jupiter Gold and Silver, Fresnillo, Greatland, PAF etc which as will this trust outperform the ETFs on the way up.
BTW just found this substack and the analysis is brilliant! Many Thanks
If you compare the physical gold price chart and the GPM chart over 5 years it is pretty clear that GPM is a worse investment: lower return and far higher volatility .
Producers will always outperform the metal price on the way up. If compare over 1 or 3 years i imagine it's outperformed. There was the 2022 slump after covid gold bull so producers will have underperformed during that period.
Calibre is has a merger agreement with Equinox, awaiting shareholder vote. Not sure if this has any real effect to the valuation. But it looks good!
I prefer less risky miners so I bought GDGB ETF (GDX in sterling) as the market fell. It doesn't have the advantage of a discount but it has larger miners.
When times are good, the larger miners go around buying the smaller producers. Double upside...
I thought the same but when you look at fund performance in previous bull cycles 2016, 2020 etc the smaller producers will outperform in this gold bull which will be much larger than the previous two. It will be tough to lose money in gold and miners over the next couple of years regardless. Currently i've got Jupiter Gold and Silver, Fresnillo, Greatland, PAF etc which as will this trust outperform the ETFs on the way up.
BTW just found this substack and the analysis is brilliant! Many Thanks
If you compare the physical gold price chart and the GPM chart over 5 years it is pretty clear that GPM is a worse investment: lower return and far higher volatility .
Producers will always outperform the metal price on the way up. If compare over 1 or 3 years i imagine it's outperformed. There was the 2022 slump after covid gold bull so producers will have underperformed during that period.
Nyamen, I didn't have a positive view of GPM either, until I looked at its holdings.
Obviously it would've held some different holdings in 2020 and even it didn't perhaps they weren't producing back then.... they are now.
OB
OB, I would specifically like to invest in silver but found it hard to find a way (HOC, SilverX is a bit small). Any ideas?
Hi Dan,
LON:MAFL is pretty good in that they have Silver Bullion held directly plus a number of silver holdings. Most notably:
Cerrado Gold - Don Nicolas is about 10% silver while Lagoa Selgada is about 15% silver.
Luca Mining - 75.5Moz of Silver (Measured and Indicated)
You could of course buy either of the above directly too (both are Canadian listed).
OB
Fresnillo mainly silver and some gold but maybe not a 5 bagger if silver gets wild as already 7bn market cap. About to go ex-div next week for 0.53p
Another IT that's been on my watchlist. Thanks so much for the write up.