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

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.


  • I prefer the rare earth elements myself these days and hold a small position in MP Materials
  • 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.
  • I've been tracking CCJ. Uranium. I missed the bargain price, earlier in the year.
  • 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.
  • +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 !
  • 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 question is what is better? Owning the precious metals or companies that mine etc...
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