Gold mining funds - thoughts?

[MSBravo]

Evening gents,

As the future looks increasingly uncertain, with a tricky Q3 ahead, I am looking to diversity into some gold mining funds.

BlackRock Gold and General and LF Ruffer Gold look exceptionally attractive. The latter is up 40% over 3 months.

Is anyone else of the same thought process?

[GT03ROB]

My thinking is maybe you have missed the boat.

[Meeten-5dulx]

What do you think will happen to the price of gold?
It is near recent highs. More bullish than bearish?
If so, then those funds might prove the right choice.

It would seem that you’ve missed the main gain as mentioned above, but in principle I agree with you of more pain in q3. Just not enough to think gold is a good foil for it.

[Oi_Oi_Savaloy]

Perhaps Silver might be worth looking at? Always lags gold so perhaps you could buy now? just a thought.

There could be a serious implosion in Q3 - the job losses, the financial pain, the effects of QE not alleviating things or running out of steam - if there's a crash - people will be scrambling for a store of wealth.

i'm very pessimistic however.

Aren't I right in saying that governments are hoovering up bullion and have been for a while? (or am i utterly wrong on that one - I'm sure I read somewhere that was the case).

[Meeten-5dulx]

[url]seen this??|https://www.theguardian.com/money/2020/jul/12/precious-metal-the-gold-standard-investment-when-a-crisis-hits
[/url]

Prob a more concise explanation of the pros and cons.

As for silver - VAT kills it....

[Throttle Body]

Personally, I think that gold has a very long way to go higher. By higher, I mean relative to national currencies. Massive money printing is likely to push the value of national currencies down in my view.

Consider gold itself, as well as gold miners.

[williaa68]

I own a small amount of the blackrock fund. It is in essence a leveraged bet on the gold price. If you think the gold price is heading higher it is certainly one way of playing that. I bought £5k worth in Jan 2016, which is now worth £14k. By comparison the gold price at the time was about $1100. I just wish I’d bought more!

[MSBravo]

williaa68 said:

I own a small amount of the blackrock fund. It is in essence a leveraged bet on the gold price. If you think the gold price is heading higher it is certainly one way of playing that. I bought £5k worth in Jan 2016, which is now worth £14k. By comparison the gold price at the time was about $1100. I just wish I’d bought more!

Have just taken this decision myself as a long term +5 year hedge. £5k into Ruffer Gold. See how we go.