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    ALL WEATHER PORTFOLIO – HOW MUCH GOLD MINERS?



    How much gold mining stocks to include in your portfolio depends on your portfolio preferences and risk appetite. Gold stocks are all different where value depends on mining costs, reserves and debt.

    What do I do? Full-time independent stock market analyst and researcher:
    https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform

    Check the comparative stock list table on my Stock market research platform under curriculum preview!

    I am also a book author:
    Modern Value Investing book:
    https://amzn.to/2lvfH3t

    More about me and some written reports at the Sven Carlin blog: https://svencarlin.com

    Stock market for modern value investors Facebook Group:
    https://www.facebook.com/groups/modernvalueinvesting/

    View 12 Comments

    12 Comments

    2. JD on

      I have to disagree. I agree gold should have a place in any portfolio. But stock picking gold mining stocks is a terrible idea for 99.99% of the investors. On top of that, your timing has to be spot on and we all know that most people have not the best timing most of the time. Especially in hindsight. Of course. After all, nobody has a crystal ball. Me neither.

      Now just looking at the GDX (gold miners ETF) chart: when the subprime crisis started in the summer of 2007, the GDX tanked from roughly 45 USD to 20 USD; if you timed exactly correct and bought the GDX in Sept/Oct. 2008 for 21 USD and sold it for 60 USD in 2011 you did great of course, but other then that, the miners, in general, have been the worst investments of the past decades. If you got in to the GDX or GDXJ for that matter in between 2009 and 2013 you are still on a major loss. After 2013 your timing still needed to be good otherwise you have been looking to a loss still ever since. Before 2007 same dreadful story. Last five years we haven't seen much movement either. Of course you could have made great trades between 15 and 30 USD looking at the GDX last five years, but we are talking about an All Weather i.e. Long Term Investment Portfolio here. Buy & Add/Middle/Hold. Not trading.

      So therefor I would like to suggest that, if you want to insure your longterm investment portfolio with gold stocks, instead of or next to actual physical gold and silver coins, there is only one real investment-worthy gold stock with a great historical longterm track-record and that is FNV i.e. Franco-Nevada, the gold standard in mining stocks.

      https://en.wikipedia.org/wiki/Franco-Nevada

      https://seekingalpha.com/article/3963704-franco-nevada-gold-standard-mining-stocks

      Also, just always have cash. Always. Have. Cash. Why? To buy the dip. And especially to buy the crash, when it comes.

      Kind regards from Amsterdam.

    4. TheMpamMpam on

      I know you always repeat that one should not have more than 10% in gold stocks and miners are not investments but hedging. But given the fact that some miners like HMY are price wise very low would it make sense to risk a bit more considering the odds? It seems like a nice risk reward to me. Thx

    5. Scott's Critical Mass on

      Sven – You're one of the few investors willing to talk about 5-10 years out and more.  Most everyone is now now now, only interested in how much can be made tomorrow or over the next week or month nowadays.  It's nice to get your longer term perspective on things and I wish more people realized the best method of making real money is letting winners ride once you find them, sometimes for many years.  It's all too east to take short term profits, but somehow harder to hold and watch those profits multiple over time.  Immediate gratification can be a curse when it comes to investing.  Cheers!

    6. SuperiorSeven on

      The Shiller PE ratio, low volatility, and record optimism calls for more than a 5% allocation in gold miners. Gold, especially at this time, is not a risk asset. Physical gold will preserve your wealth in times of turmoil; however gold miners will build your wealth. A 25% allocation, at this time, is very necessary. The next crisis is a dollar/ money crisis, so why not own the companies that produce the safest form of money in the world; the type of money that people will flood to and, right now, is completely undervalued?

    11. Nick on

      Sven, you’ve gotten me interested in miners, if even seeing a flat, or small negative movement in our portfolio. I read the fellows post below and counter argue that gold miners differ far too much in “quality” to validate an index argument. I see this in the screeners after following up on one of your videos. As far as I can tell, one is literally hedging your hedge which defeats the point in an ETF. I suppose that could qualify for indexes aswell, whatever moving forward….
      I don’t understand the true purpose of a hedge. As far as I can tell, from a value perspective it is to protect our ego Incase our portfolio gets smashed to nickels and dimes in a recession?
      Is it to sell at inflated prices to increase our purchase power in time of need?
      Is it apart of a reallocation process which we work into further at the end of a market cycle to capitalize?
      Not sure if I make sense, for some reason I am attracted to volatility…maybe I like punishment or just need to purchase a volatile stock to work this out of me lol.

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