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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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So you’re thinking about investing in the precious metals mining sector?

hank
edited June 2021 in Other Investing
I thought it was worth posting this illuminative chart uncovered doing research this morning. Might make one think twice. Personally, I’m bullish on gold. (But I know only slightly more than the lamp-post on the corner.)

As this Chart shows, you can lose a lot of money playing in this arena. Check out the “return” from 2011-2015. (And Morningstar has the audacity to give this baby a 5-Star rating!)

Disclosure: I own this fund. It is among my smallest holdings.

Comments

  • MarkMark
    I prefer the rare earth elements myself these days and hold a small position in MP Materials
  • Sven
    Exited entire position in gold last fall and started to build the position in the last 6 months. If inflation worsen, this may play out okay this year.

    Also I am looking at other metals for electric vehicles : lithium and copper.
  • CrashCrash
    I've been tracking CCJ. Uranium. I missed the bargain price, earlier in the year.
  • hank
    edited June 2021
    I guess I felt obligated to caution the uninitiated about the volatility of this sector. There’s lots of different ways to play the inflation card - if you think that’s where we’re going. Bullion is tamer than the miners, and there’s lots of allocation funds with limited exposure.

    Adding up the string of 5 consecutive red (loosing) years for OPGSX beginning in 2011 I get north of 120%. Ouch! Who has the stamina to ride something like that out? (And it’s “5 stars” at M* - which should make you wonder about those ratings).

    OK - I did my civic duty.
  • carew388carew388
    +1 hank. Based on the Fido chart of OPGSX, 10k invested as of 5/31/11 atrophied to $2,425 by year-end 2015! If I was going to play in this sector, I would consider GDX since I could sell without incurring transaction fees. I'm sure Rono could add quite a bit to this discussion !
  • KHaw24
    Mark said:

    I prefer the rare earth elements myself these days and hold a small position in MP Materials

    I'm with the OP and know little about this space other than some M* distortions and their 'favorite' funds. I was looking at REMX...my question is what is better? Owning the precious metals or companies that mine etc...
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