i simply meant gold always moves in opposite direction to...

First 124 Last

Share
Profile

Follow
chad987

2,922 Posts.

236

15/03/21

15:21

Post #: 51776683
Share

Originally posted by Koeln: ↑

You wrote: "it's paradoxical but true: gold goes up with deflation expectations and down with inflation - because gold is the bboz of nominal yield it doesn't care about real yield."

Acknowledging that both NCM and bboz are not doing well recently, I would like to point out a difference between bboz and NCM.
NCM still pays a dividend (above current cash rate) while bboz does not pay anything, if you are holding these as a long term hedge in your portfolio.

In my personal opinion these instruments perform as a hedge in any portfolio and should only be considered as part of a well diversified portfolio.
For the reason of NCM paying a dividend above current cash rate, I personally prefer to have a bit of this in my portfolio over bboz currently.
But bboz and NCM are not the same and everyone has different strategies for their portfolio.

Disclaimer: This is not financial advise. DYOR.

Expand

i simply meant gold always moves in opposite direction to nominal yield like bboz with XJO, and i did not mention gold miners. i wouldn't buy gold at 1500, i buy miners like ncm because pay good divs (wish they'll be as generous as fmg), and for ncm the future growth isn't priced in. bboz is not a long term hold, you day trade it or swing it at max for 3 days, the decay will eat you alive over 1 month or more.

Last edited by chad987: 15/03/21

NCM Price at posting: $24.38 Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply