“All that glitters isn’t gold, but the really good stuff is.” — Chip Wood
Earlier this week, I wrote a column for Investment U that caused an uproar among gold bugs: “How to Lose Money — Invest in Gold Stocks!” Read the article here.
Basically, I discovered that almost all gold mining stocks, including the majors, have a very poor track record. On top of that, they were extremely volatile.
The graph below demonstrates the problem with gold stocks:
The S&P 500 stock index looks much more stable and profitable than the gold stock index.
One reader, James Turk, founder of Goldmoney, took me to task, pointing out that Newmont Mining (NEM) has more than doubled since 2000, while Goldcorp (GG) has risen sixfold. But they are extreme exceptions, and even then you had to ride quite a roller-coaster rise in the new century.
He also likes the fact that gold and stocks tend to move in opposite directions, providing a hedge during a bear market. Gold stock funds are often included in a well-diversified portfolio as non-correlated investments.
Still, I’ve seen too many investors get caught up in gold fever and be overexposed to this volatile sector that has no long-term future. Too many investors pay heed to the merchants of doom and gloom who predict end-of-the-world scenarios at conferences.
I repeat, since the lesson is so important: Investors beware! Most investors should avoid gold stocks like the plague. Gold and silver coins can be good investments over the long haul, but don’t be talked into buying gold stocks for the long term.
And think twice about attending a gold bug or “natural resource” investment conference loaded with doomsayers. Go ONLY if you are a high-risk speculator who can withstand a barrage of Armageddon scenarios. If you are an easily scared investor, it may be the most expensive conference you ever attend.
We present both sides at my own conference. And we’ve decided to do a major debate at this year’s FreedomFest on the topic “Should You Invest in Gold Stocks?” The conference will run July 19-22 in Las Vegas. For more information, click here.
It will be the most rewarding conference you will ever attend — because you will hear BOTH sides of the debate. That way, you can get a more balanced approach to precious metals, real estate and stocks. I’ll be speaking at the conference along with other investment gurus, including Alexander Green, Mark Mobius, Donald G. Smith, Louis Navellier, Keith Fitz-Gerald, Rob Arnott, Nicholas Vardy, Adrian Day, Doug Casey, Peter Schiff, Jim Rogers and many others. Let the debates begin!
In case you missed it, I encourage you to read my e-letter from last week about what the U.S. business boom means to investors.
Don’t Miss the Big Fight in Vegas!
At this year’s Las Vegas MoneyShow, join me in the ring at Caesars Palace to see me knock out fellow newsletter writer Mike Turner! What is the best investment strategy? I will fight for buying good stocks for the long run while Mike will fight for short-term trading. If you cannot make it to the MoneyShow, make sure you listen to the debate live online by clicking here.
I will also be the moderator of a general session in the opening ceremonies with Steve Forbes and Steve Moore on “Trump and Your Portfolio.” Not to be missed.
MoneyShow Las Vegas, May 15-18, 2017, Caesars Palace: Other speakers include Jeffrey Saut, Jim Stack, Pamela Aden, Marilyn Cohn and Matt McCall. I hope to see you there. If you wish to attend the Las Vegas MoneyShow in person, call 1-800-970-4355 or 1-941-955-0323 and mention the priority code 042818 to register for free, or simply click here to sign up online.
You Nailed It!
A Free Peek into the World’s Most Expensive Conference
Critics of capitalism also complain that the average person doesn’t have access to the connections of the rich and famous.
Michael Milken, the famous junk bond king, is proving that thesis wrong with his annual Milken Institute Global Conference at the Beverly Hilton Hotel in Los Angeles. I’ve attended this event several times and have always enjoyed meeting and listening to some of the best and brightest experts in the world, as well as quite a few celebrities.
The cost of this event is high — over $5,000 per person. But Milken has offered an alternative for those who can’t afford attending — free access via live and recorded streaming of a dozen or more of the events! Just click here and watch!
This year’s conference included past and present government leaders such as George W. Bush, Joe Biden and Education Secretary Betsy DeVos… corporate chiefs Jamie Dimon (Goldman Sachs) and John Chambers (Cisco)… Jim Yong Kim, president of the World Bank… and even Magnus Carlsen, the World Chess Champion. (His talk on winning at chess is available on the website.)
Of course, there’s nothing like attending in person. For those who like the real thing, the best alternative to the Milken conference is my own “FreedomFest,” held annually each July in Las Vegas. Steve Forbes, the co-ambassador, calls it “the gold standard of all conferences.” He attends all three days. Unlike the Milken conference, we don’t have a “green room” where high-profile speakers hang out. So you get to meet them in person… including our keynote speakers this year: William Shatner, Senator Mike Lee, Congressman Thomas Massie, Greg Gutfeld and Kennedy of Fox News, along with many investment gurus including Jim Rogers, Marc Mobius and Alex Green. FreedomFest also only costs a tenth of what Milken charges — it’s only $595 per person/$895 per couple, and if you use code FS 2017, you save $100 off the registration fee. Dates are July 19-22, 2017, at the Paris Resort, in Las Vegas. We also offer a low hotel price, only $129 per night. For details, go to www.freedomfest.com, or call toll-free 1-855-850-3733, ext. 202.