Miners down…

I also bought two gold mining companies on what I though was a "dip" in November and as I watched the stock prices fall, realized that unlike the other companies that are recovering from the crash, gold company stock prices increased to new highs during COVID out of consumer fear, IMO. I think what we are seeing right now in gold mining company prices, is a settling of stock prices in between the pre-COVID levels and the COVID-inflated "protect-my-cash-in-gold" frenzy price points. If you bought great companies, your investment should still go up over time, so I would not panic sell positions in gold mines.

I also bought two gold mining companies on what I though was a "dip" in November and as I watched the stock prices fall, realized that unlike the other companies that are recovering from the crash, gold company stock prices increased to new highs during COVID out of consumer fear, IMO. I think what we are seeing right now in gold mining company prices, is a settling of stock prices in between the pre-COVID levels and the COVID-inflated "protect-my-cash-in-gold" frenzy price points. If you bought great companies, your investment should still go up over time, so I would not panic sell positions in gold mines.

Awesome thanks guys! Always appreciate your outlooks.

Awesome thanks guys! Always appreciate your outlooks.

I am in a similar position as I have taken the profit on financials and increased exposure on crypto/crypto miners/and generally I bought all the dip of silver/gold miners recently understanding that it seems oversold. This is definitely more risky way to do but gold/silver prices seem to be holding up very well.
Recent news of war may be favorable to the metals. I'm not sure - but I am heavily bullish.

I am in a similar position as I have taken the profit on financials and increased exposure on crypto/crypto miners/and generally I bought all the dip of silver/gold miners recently understanding that it seems oversold. This is definitely more risky way to do but gold/silver prices seem to be holding up very well.
Recent news of war may be favorable to the metals. I'm not sure - but I am heavily bullish.

Hi there,

Without knowing your exact profile, goals, etc - we can't make a recommendation on what you should do. It'll depend on your risk profile, how much you contribute to your investments annually, age, etc. So many factors to consider.

That being said, I believe gold stocks are cheap here. They are generating considerable cash flow, raising the dividend and the fundamentals to support a high gold price remain in place. Sure, miners are showing weakness but in many cases, it appears over done. Should gold maintain these price levels, then I'd expect the miners to eventually close that valuation gap.

The strategy you mentioned at the end might be the right choice if you think miners are going to rebound. It will also depend on if you see better opportunities. For example, if you have your an on a stock that you think will yield better returns here, then perhaps selling and taking advantage of that opportunity might be best. Personally, I would not sell if I didn't see a better opportunity - likely would if I did as that exposure is quite high.

I do however, agree that at 18% - it is a very high exposure and if it were me, I'd be looking at rebalancing. How I did that would depend on investing horizon. I remember at one point financials accounted for almost 50% of my holdings...i didn't sell any, but slowly diversified away from financials. Many ways to go about doing this if you have a long-term horizon. If you have a shorter term horizon, than it may be best to rebalance sooner than later.

Mat

Hi there,

Without knowing your exact profile, goals, etc - we can't make a recommendation on what you should do. It'll depend on your risk profile, how much you contribute to your investments annually, age, etc. So many factors to consider.

That being said, I believe gold stocks are cheap here. They are generating considerable cash flow, raising the dividend and the fundamentals to support a high gold price remain in place. Sure, miners are showing weakness but in many cases, it appears over done. Should gold maintain these price levels, then I'd expect the miners to eventually close that valuation gap.

The strategy you mentioned at the end might be the right choice if you think miners are going to rebound. It will also depend on if you see better opportunities. For example, if you have your an on a stock that you think will yield better returns here, then perhaps selling and taking advantage of that opportunity might be best. Personally, I would not sell if I didn't see a better opportunity - likely would if I did as that exposure is quite high.

I do however, agree that at 18% - it is a very high exposure and if it were me, I'd be looking at rebalancing. How I did that would depend on investing horizon. I remember at one point financials accounted for almost 50% of my holdings...i didn't sell any, but slowly diversified away from financials. Many ways to go about doing this if you have a long-term horizon. If you have a shorter term horizon, than it may be best to rebalance sooner than later.

Mat