I got burnt so bad in precious metals because of my limited knowledge of the derivatives market and my miss use of leverage lack of proper portfolio management. I've got a sour taste in my mouth with it. But it will never go to zero. I say 5-10% of net worth tops to metals and never more. Hold for super long-term and get ready for frustration if you're trying to "cash in." It's truly a hedge against catastrophe. But I do love looking at gold coins and bars! Nothing like it!! I'll still own it, just not for the purpose of making money. I do agree the miners are the way to profit on gold, not owning gold itself. My 2 cents. :-)
Yep. Miners are still down over 50+% from their 2011 highs. Think they'll double or triple from here over the next two or three years. Not as spectacular as some of the cryptos these days but then I'm just trying to balance my portfolio. I've never used derivatives market though . . . couldn't see myself using leverage, but I can see the allure.
Got it. Balancing the portfolio by allocating to miners is a great idea! Thanks for sharing!
I e. Even getting into gold over the last six months for the first time. How was it frustrating to cash in? I’d like to know what I’m up against. Thanks in advance.
Frustrating in the sense that the derivatives market (controlled by the banks) will not let metals perform to their fundamental potential. That's all. But I do believe in a balanced portfolio which can and should contain 5-10% allocation to metals. Make money in business and allocate your cash flow to a balanced portfolio and monitor your asset allocation percentegaes to determine when to take profits through rebalancing. Hope this is clear! :-)