Yeah, interesting subject indeed. My experience, I only trade gold stocks, not physical gold price, and really it's only a short fleeting window of opportunity, in the past I've struggled with it, but on the ASX there is such a huge number of them, it makes for temptation. Buffett, I'm no fan of him, choosing Barrick to buy would be due to its large cap, not because it was the best performer among all gold stocks. But the gold stocks outperform the price of gold nearly every single time. Here's 5 year chart, XAUUSD vs GOLD (Barrack stock symbol [in green]).
Win big and lose big on mining stocks. They've got big betas relative to spot gold. You like the big caps (Barrick, Rio, BHP, Newmont, etc.) or small caps in this sector?
I tend to buy mid caps at the beginning of a new trend run then migrate to small caps and microcaps as the trend progresses. Currently I'm only holding a couple of small caps and several microcap gold explorers in the gold sector. Don't tell me its risky - I know that, but I do a reasonable amount of research before playing the game. Hehehe.
I like risky stocks too, as long as there's big reward. I missed the boat on miners back in March. I bought a decent amount of the GLD ETF last fall. If we get a nice correction, I'll look for some bargains in the mining/gold exploration sector....maybe put a low bid in GOEX if it gets below $25.
I don't have the stomach for the gold stocks. They keep moving in sympathy to the stock market. I do think the commodity has already corrected. I am in FOMO mode now. 2400 by EOY. Yep, crazy.
There's another level below microcaps, that's Nanocaps, stocks below $40mill on the ASX. I have some of them too. Haha.
So you don't have a stomach for gold stocks??? How's this for an announcement today, (Silverlake Resources SLR.AX) with our ASX mkt opening in approx 15 minutes....
IF SLR gets back below $1.00 I'll have to back up the truck and load up on it. They just made a ridiculous amount of money for only being a $2+ Billion company.