Do you allocate precious metals and mining stocks?

[Culture]

With the massive beat down of precious metals and associated mining stocks, I have finally been able to allocate a small portion of my portfolio to precious metals equities (mining stocks). I am curious how many here hold precious metals or associated mining stocks in their portfolios.

I am looking for specific investments in precious metals. Do not include equities included in general index funds.

{Edit: You can vote more than one option in case you invest in physical metal and mining equities.)

 

[Animorph]

I used to have some mining stocks (fsagx) as a temporary allocation to hedge this bear market, but I sold it at a reasonable gain. It's down far enough and the prospects for inflation seem high enough to make it worth a look again. My two concerns are that it seems like mostly an investment vehicle without a lot of real world basis, and the entire globe will probably see inflation so that we may not see any relative to other currencies. I used to have a financials fund as well, so that might compete for the slot as well.

 

[DblDoc]

I own no metal and have whatever mining stocks are already in my stock market index funds - I have no idea what % that might be.

DD

 

[Culture]

Oh, I am aiming for 2.5% in mining equities (5% of my equity portfolio). I currently have 1.5%. I have some more to buy.

 

[Culture]

My two concerns are that it seems like mostly an investment vehicle without a lot of real world basis, and the entire globe will probably see inflation so that we may not see any relative to other currencies.

While this seems to me to be true for owning physical gold, it does not seem to be true for owning mining stocks, which actually earn money, grown, and pay dividends. I do not think I would ever own physical gold unless I felt the need to invest a very, very small percentage (0.1% maybe) as insurance for an EOTWAWKI scenario (BTW, I do not think this is going to happen). I do currently own about $1000 (was $2000 about 60 days ago) in pre-65 silver coins, but only because I never bothered to sell them after I inherited them from my grandmother. I guess when the bottom really drops I can trade them for ammunition and cat meat .

 

[ziggy29]

My target allocation is 4% in GDX. It's lower than that, to put it mildly.

But in 2000-2002, the miners more than doubled while techs were imploding.

 

[FIREd]

I own physical gold and silver. I also used to own 2 Prudent funds (BEARX and PSAFX) that invested heavily in gold mining stocks. The first one was to hedge against market declines, and the second was a USD inflation hedge. I sold both earlier this year. I might get back into PSAFX in a little while, but as an inflation hedge I am looking at VIPSX right now.

 

[Culture]

I might get back into PSAFX in a little while, but as an inflation hedge I am looking at VIPSX right now.

To me, a hedge has to make up for the losses that you are hedging. VIPSX will simply not loose value to inflation, as I understand it. It is not going to make you "real" money. Am I wrong?

 

[FIREd]

With VIPSX you earn inflation + a little extra (well right now, a very attractive extra). I don't know if I should call it an hedge per se, but basically it helps protect against the devastation caused by inflation.

 

[Khan]

A couple handfuls of silver and gold.

 

[chinaco]

I have none. But have considered investing in gold as a hedge against inflation and unstable times.

If one looks at a gold chart... the 70's inflationary period drove prices up permanently. They seems to stabilize after that with ups and downs based on speculation on inflation.


IMO - Gold is not a good investment for growth or income... it is a hard asset hedge against inflation. It seems to go up in price based on speculation (demand)... inflation or fear of inflation on currency drives demand up or down.

I am considering owning some because if all else fails it hold value...(and a black swan inflation scenario). not sure of the amount... probably less than 5% of the portfolio. I would be about 2/3 in Gold Buillion ETFs 1/3 in a safety deposit box.

My buy in mark would be about 1/2 of current prices in the $300 to $350 range.

We have enough money that we hold it for significant periods of time. I figure my worst case scenario is that I wind up selling it when prices go up again significantly and have a low overall return.

 

[kumquat]

My portfolio is heavily weighted with mining stocks but the only producer of precious metal (gold) is primarily a Uranium company.

 

[TargaDave]

I'm in the 5-10% category of precious metal (gold and silver) along with a much smaller amount in mining stocks. Mostly bought in from 400 to 600 range and will stay in as long as the printing presses are running at full speed. I'm not really a big gold advocate and will be happy to reduce the allocation to below 3% at some point in the future

 

[big galloot]

No physical metal except a few fillings, but I do own GLD, the gold ETF, for about 5% of my port. Nice convenient way of owning gold without the hassle of transportation, insurance, storage, security, etc. Of course, if the fabric of our society ever disintegrates, getting my share of the bullion may be problematic. Some coins buried under a rock would indeed come in handy in the event of an apocalypse.

 

[treypar]

I wanted to invest in this sector but the VG fund was closed. I guess that I got lucky as I stayed invested in the S&P 500.

 

[harley]

No physical metal except a few fillings, but I do own GLD, the gold ETF, for about 5% of my port. Nice convenient way of owning gold without the hassle of transportation, insurance, storage, security, etc. Of course, if the fabric of our society ever disintegrates, getting my share of the bullion may be problematic. Some coins buried under a rock would indeed come in handy in the event of an apocalypse.

No need for coins under a rock. DW's decades long QVC jewelry collecting has created a nice stash of metal in various carats. Add in the gems and we're probably set for post-apocalyptic trading for a while. And that's without even trying to pass off the Diamonique as real.