To prove to you my point as addressed in my previous post, see this Table below comparing selected gold stocks against two indices and gold price
From the Table below, you can draw the following conclusions:
Over a 5+ year period,
(a) The ASX200 did absolutely nothing , only gained 5% . Any good buying ETF?
(b) XGD outperformed XJO by 50 times !
(c) XGD ouytperformed AUD Gold by more than 5 times
(d) Anyone holding onto SAR would have made 14x fold and 7x on NST, 16x on CHN and 50x on DEG
(e) DEG, CHN and SAR were gold juniors back then , the first two just another ticker symbol no one bothered to look at
(f) Pick the right gold junior and ride them over the long term, the risk reward can be very compelling
(g) I picked Jan 2015 because US Gold fell from $1400 in Jan 2015 to $1162 in Nov 2015 before scaling higher, the rest is history as we know- so even with short term hiccups in gold price, stay the course with potential gold juniors for the long term
(h) DEG could be another NST in the making , not saying it would but it is at a point in its cycle when it starts to get re-rated higher as it gets into production and growing, that is how it happened with NST, SAR and GOR and the same can be said of possibly DEG and CHN [note this is just a point in making, not recommending buying these stocks]
Column 1
Column 2
Column 3
Column 4
Column 5
0
Featured Stocks
Code
Price 2 Jan 15
Price 18 Sep 20
Chg%
1
NORTHERN STAR
NST
$ 1.770
$ 14.870
740%
2
SARACEN MINERALS
SAR
$ 0.350
$ 5.420
1449%
3
GOLD ROAD
GOR
$ 0.370
$ 1.690
357%
4
CHALICE GOLD MINE
CHN
$ 0.10
$ 1.750
1650%
5
DE GREY MINING
DEG
$ 0.03
$ 1.550
5067%
6
US GOLD
$ 1,400
$ 1,959
40%
7
AUD GOLD
$ 1,400
$ 2,675
91%
8
ASX200
XJO
$ 5,588
$ 5,864
5%
9
ASX ALL ORDS GOLD
XGD
$ 2,530
$ 9,020
257%
Today, ask any instos about Aussie gold stock to buy, they would mention names like NCM,SAR, EVN, NST (its like the 4 big banks) but remember SAR/EVN/NST was once a DEG and DEG was once an even smaller gold junior like FFR/KZR.
