Updated April 17, 2020 - Price goes up when the time has come: and time has come
The evolution of our LAZY PORTFOLIO since we started to publish it on Goldonomic: 125,48 oz. was our initial (pre-2008 crash) Gold position. [Dividends etc. are NOT accounted for].
129.68 oz. of Gold is the last total. In 2008 the price of gold was $850, today it is $1,700 (Mar 2020). When the portfolio was initially created, its total was € 92.850. Today it is € 207.488- The Dollar value, however, is still lower (but close) than the top value we had in Oct 2012 or $224.470,-
"It is very hard to beat GOLD!"
note-Jan 3, 2017: As every investor acquires his positions at a different price and time, we have experienced that it is practically impossible to run a model portfolio over an important time span. We shall, however, continue to update from time to time our model portfolio as it remains an important parameter as to WHEN certain stocks are cheap or not. TODAY there is no doubt the JUNIORS are A LOT CHEAPER THAN THE MAJORS.
note Apr 17, 2020: We have liquidated Stocks and have bought 1,793 x 1 oz. 1 oz. Silver coins with the funds.
Whatever is said and written, Stocks and Gold/Silver are still the safest way to keep your savings. The alternates: Real Estate and especially Treasuries, Bonds, and derived products like Saving Accounts, Manufactured investment instruments and Derivatives are a ticking time bomb. It is correct that both the Dollar and the Euro were saved by the politicians in 2011 but this doesn't imply they will also succeed in 2014/15. As a matter of fact, I believe 2014 will be A LOT WORSE than 2013!
Markets can stay illogic for longer than you and I can stay solvent, especially when market manipulators can print every cent they lose.
Ever since September 2011 everything has been done to convince the Savers and Investors that the BAD investments were the best, were the safest...
- Patience is bitter but the fruit is sweet. Since 1980 we booked an on average +20% return per calendar year. Gold has been consolidating since August 2011 until (December 2013) now and gold stocks did not perform, especially the Juniors. August 2011 was certainly a top and those who bought during the month of September will soon see their losses reversed in profits. It does earn to sit tight if your timing wasn't 100% correct. A BOTTOM and REVERSAL we have...even if it took 2 1/2 years to mature. To be honest, we don't like this school-exam-exercise as the valuation of a portfolio always remains a picture and doesn't explain the investment philosophy which is the driving motor behind successful investing. Those who invested in Gold in 2004 and 2008 are of course much better off than those who invested in the Summer of 2011...
- If you invested ALL of your savings in the Summer of 2011, you will need some PATIENCE before your positions will show a Fiat Paper Profit. Eventually, you will be GOOD!. Consider the lost time an insurance premium you paid to keep your savings in a SAFE INVESTMENT VEHICLE.
- The value of each purchase is converted in Gold according to the fix of the day and also evaluated in ounces of Gold (31,1034 gr.) in the table based on the days' gold price. Expressing a portfolio in Real Money or Gold is also a new experience for us. [Dividends, etc.. are NOT taken into account!].
- Those who started to invest in Gold and Silver shares starting August 2015 until January 2016 ALL MORE THAN DOUBLED their investment! - we expect at least a similar experience for those investing in the Gold & Silver miners TODAY. NEVER FORGET that the longer it takes for a BOTTOM to Mature, the STRONGER the Secular Upleg will be.
" In the first instance, the single best way to build wealth now, while there is still time to do so, is in carefully selected gold and other resource and energy stocks. In order for it to be free from the threat of confiscation, at least some part of your wealth needs to reside in a country where you don't. To state the obvious, I would be very cautious about traditional stocks and bonds until we see how things shake out. Rather, get positioned in gold and silver stocks now, ahead of the curve, then sell out for a big profit to the panicking masses and move an increasing percentage of your wealth into tangibles such as gold, silver, and maybe, as part of a diversified portfolio, real estate in especially attractive areas – but only after the bubble has decisively burst.) " Doug Casey
Candidly, we think that at this time most GOLD and Silver shares and especially Junior Gold and Silver shares have become better investments than Gold and Silver options ever can be and that they can triple overnight. (August - December 2015) I lived similar experiences in the 1980s. One must, however, exercise PATIENCE: Price most of the time goes up when nobody believes it will and when sentiment is negative.
The portfolio holds approximately 65% Gold, some Silver, 20% Gold & Silver mines, and 15% Oil and Uranium shares. (figures in the last column are calculations based on the gold price). The portfolio is a TYPICAL LAZY INVESTOR PORTFOLIO. No trading and infrequent BUY/SELL operations. It doesn't reflect the boom in Recession Proof shares we had since the Fall of 2011 because we did not feel like selling some of our physical gold position to increase our stock exposure.
- As of July 24, 2014 sell 50 Diamond offshore @ $48 , sell 79 PPL @ $33.50 - keep funds ready to re-invest.
- As of August 8, 2014, BUY 194 Detour Gold @ 13.57 for a total of $ 2,646 -
- As of August 18, 2014, BUY 10,430 Banro (BAA) at 23 cents for a total of $ 2,400
- As of September 8, 2014, sell 45 Noble Drilling @ $ 26,50 ($ 1,192) and replace by 159 Gazprom @ $ 7.50
- As of October 24, 2014, sell 40 EBAY @ $ 51 and buy 380 Pretium res. (PVG) @ $ 5.30
- div/yield numbers are not correct at this time (August 2016)
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