Precious Metal Stocks
Precious metals such as gold and silver have an important role in our portfolio.
Investor sentiment towards these metals frequently improves in an economic downturn and/or in an inflationary environment.
This is borne out by the incredible returns that gold generated as US inflation topped out at 13% during the Carter presidency (inflation adjusted, grey zones are recessions):
While silver is not strictly a precious metal as around half of its demand is derived from industrial uses - in particular for its high conductivity (i.e in solar cells), both silver and gold stocks are one way we hedge our portfolio.
Precious metals, and especially gold, are often described as a store of value. Meaning that its purchasing power doesn’t erode in the long run.
Gold aficionados often point out that gold has always been steady in terms of what you can get with it.
2,000 years ago in the Roman Empire, an ounce of gold would let you buy a nice toga and meal for your family. 200 years ago, you could get a tailored suit and a restaurant meal for your family. Today, with the gold price where it currently stands - the same is true.
As a result, precious metals are a steadying influence in our portfolio and using our knowledge of mining investments, we look to maximise returns from our precious metals exposure by selecting the right companies to back.
In this section you can find all our educational material regarding precious metals.
Learn about Precious Metal Stocks
No articles have been published for this thematic.