Updated November 28, 2023 - Price goes up when time is up.
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].
138.33 oz. of Gold is our last total. In 2008, the price of gold was $850; today, it is $2.027 (Nov 2023). When the portfolio was initially created, its total was € 92.850. Today, the total is € 255.219,- which has hovered around a record over the past months since we started the portfolio (The dollar figure is $ 280.394,24). NOTE that Physical Gold and Silver continue to perform BETTER than our selected stocks.
Note that, over the past months, the number of oz. of gold in the portfolio has decreased due to the lower performance of the stocks in the portfolio. This is while the portfolio's total value (because of the physical gold and silver price) has remained more or less stable.
"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 a vital time span. However, we shall continue to update our model portfolio as it remains an important parameter of whether certain stocks are cheap. TODAY, there is no doubt that JUNIORS ARE A LOT CHEAPER THAN THE MAJORS.
Note Mar. 15, 2022: The financial markets have become one big shit show, and you really have to be crazy to continue participating in this fraudulent casino? My positions in the stock market represent barely 10% of all my assets, and seeing all this, I will continue to lower that percentage. I feel increasingly comfortable in this market with physical silver and gold in a (Panamanian) safe. In the coming days, we will SELL and convert into Physical following positions: 274 ASA, 100 AEM, 11 RGLD, and 27 PZG.
Physical Gold and Silver kept out of political reach carry the lowest risk/reward. No risk of a Market Crash, no risk of a Bail-in, no risk of the bank or broker blocking your accounts for months for whatever reason, and no risk of a STOP-TRADE during a Bank Holiday. No risk that a War makes it impossible to trade and liquidate your positions.
November 2023: In our updates, we repeatedly explained why we prefer Physical Gold and Silver to Digital stocks. This includes Gold and Silver miners because the ore concentration is now much lower than it used to be. The mining cost has increased exponentially because the environmental legislation makes it harder, more expensive, and more difficult to mine. Last but not least, one must consider that digital shares can be seized at any time and that trading can be frozen at any time (Gazprom is an excellent example). Add to this that banks and authorities can always seize your shares in case of financial difficulties (Bail-in).
Those who still want to keep some shares best keep Silver Miners and, even better, Uranium shares.
Note: over the past year, while Gold and Silver have gone up, Miners lost on average 20% in market value.
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 the politicians saved both the Dollar and the Euro in 2011, but this doesn't imply they will also succeed in the future.
Markets can stay illogic for longer than you, and I can stay solvent, especially when market manipulators can print every cent they lose.
Since September 2011, everything has been done to convince the Savers and Investors that the BAD investments were the best and safest...
- Patience is bitter, but the fruit is sweet. Since 1980, we have booked an average of +20% return per calendar year. Gold has been consolidating from August 2011 until (December 2013) now, and gold stocks did not perform, especially the Juniors. August 2011 was undoubtedly 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. We have a BOTTOM and REVERSAL, 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. Of course, those who invested in Gold in 2004 and 2008 are 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 and insurance premium you paid to keep your savings in a SAFE INVESTMENT VEHICLE.
- The value of each purchase is converted into Gold according to the fix of the day and also evaluated in ounces of Gold (31,1034 gr.) in the table based on the day's 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 investing in Gold and Silver shares from August 2015 until January 2016 ALL MORE THAN DOUBLED their investment! - we expect at least a similar experience for those investing in the Gold and 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. 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 an enormous 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 desirable 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 had similar experiences in the 1980s. One must, however, exercise PATIENCE: Price often goes up when nobody believes it will and when sentiment is negative.
The portfolio holds approximately 65% Gold, some Silver, 20% Gold and 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.
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