OK, once and for all, gold Vs miners
I'm laboring this point because the environment for gold looks impeccable
And idiots are gonna sell you miners, implore you that this time is different
There is zero reason to buy them They trade at least 2 to 3x more risky
And they underperform the metal over any significant time period
And the cost of trading is high And the liquidity is poor
Which means the spread between the bid and ask is high
There is no justification in accepting this Unless you're a con on twitter peddling nonsense You know that expression, Where are the Customers' Yachts...
The only answer is to own the yellow metal
You think the divergence is gonna narrow ? Maybe
...the problem with gold stocks is that not all gold stocks move alike. That's one
...the bigger problem is when we get the crash, gold stocks typically fall harder than the S&P500 even while gold falls a little
...with gold stocks, you assume risks that do not come with Gold - company specific risks, equities selloffs
...if the divergence or disconnect is so stark, why is it taking so longer to converge?
...I think the people who want to buy Gold buy the real thing.
...And the people who are looking at equities are more interested in tech than gold stocks. Only when tech loses its lustre, will money flow move into gold stocks.
