Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Total Return, The Wall Street Journal’s personal-finance blog, recently reviewed presidential candidate Dr. Ron Paul’s (R-TX) investment portfolio. According to the latest data available from his 2010 Form A financial disclosure statement, Dr. Paul is heavily invested in gold (NYSEARCA:GLD) and silver(NYSEARCA:SLV). The WSJ explains, “The remainder of Rep. Paul’s portfolio – fully 64% of his assets – is entirely in gold and silver mining stocks. He owns no Apple (NASDAQ:AAPL), noExxonMobil (NYSE:XOM), no Procter & Gamble (NYSE:PG), no General Electric (NYSE:GE), no Johnson & Johnson(NYSE:JNJ), not even a diversified mutual fund that holds a broad basket of stocks.”
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While some may call Dr. Paul’s investment portfolio unorthodox or risky, many call it successful. Due to the devaluation of the U.S. Dollar (NYSE:UUP), gold and silver have been in a bull market for the past decade, and Dr. Paul had the foresight to invest in gold (NYSEARCA:GDX) and silver mining (NYSEARCA:SIL) stocks early. Dr. Paul’s top three holdings are Goldcorp, Barrick Gold and Newmont Mining. He has owned these gold miners for a long time, before 2003. Dr. Paul is not a doom and gloomer, he recognizes the headwinds facing the dollar and puts his money where his mouth is.
Here are the most popular gold and silver miners found in Dr. Paul’s financial disclosure statement:
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2 Comments
Vireshvarma
A wiseman indeed
Greg
Have to question holding GLD or SLV when you can hold CEF or PHYS … GLD and SLV are to be avoided … imho