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.
I think it may be time for the miners to start outperforming the stock market again. I know when one looks at that semi parabolic chart of the S&P for the last two months it certainly appears that buying miners has been a poor choice. The reality is that miners have matched the gains in the S&P although they admittedly have been more volatile. Of course that’s just par for the course in this sector and one of the things precious metal investors just have to accept.
One of the things I’ve learned over the years is that this sector has a very sneaky way of boring everyone to tears, then just about the time you get fed up and leave the sector shoots straight up for a couple of weeks. If you are out you miss the move. Then about the time everyone panics back in the sector enters another consolidation.
The only way to avoid missing the move is to just stay in. That means you are going to have periods that try your patience but ultimately the reward is worth the wait.
