To be a good diversifier something has to have a weak or negative correlation, be volatile, and have a positive real return long-term.
-Compared to gold, gold miners are more correlated with total market.
-Gold miners are volatile...very volatile, so much so that gold is actually a better risk-adjusted diversifier. Gold miner profits depend not just on the price of gold but on the trend in price
-Related to above, gold miners have overall been one of the worst performing asset classes in the past 15 years, including a prolonged near 80% drawdown in the 2010s. I'd be surprised if anyone held them through that.
-Compared to gold, gold miners are more correlated with total market.
-Gold miners are volatile...very volatile, so much so that gold is actually a better risk-adjusted diversifier. Gold miner profits depend not just on the price of gold but on the trend in price
-Related to above, gold miners have overall been one of the worst performing asset classes in the past 15 years, including a prolonged near 80% drawdown in the 2010s. I'd be surprised if anyone held them through that.
Statistics: Posted by breakfastinbed — Mon Mar 10, 2025 4:53 am — Replies 7 — Views 527