Watch out for this ‘anomaly’ when buying precious metals like gold, investor warns

CNBC/Lizzy Gurdus

Cartoon image of prospector panning for gold“‘Gold miners always outperform about two to three times whatever the underlying commodity does, and that’s both up and down,’ [Stuart Frankel’s Steve] Grasso said.”

USAGOLD note:  The anomaly mentioned in the headline notes has to do with the volatility inherent to buying gold stocks. The fact of the matter is that buying gold stocks – though in and of itself something that can be a profitable undertaking – is not the same as buying coins and bullion for asset preservation purposes.  Gold stocks are stocks first and gold second, whereas there is no doubt as to what you are getting when you purchase the physical metal – the time-honored safe haven hedge against economic and financial uncertainties.

Repost from 1-14-2020

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