Friday, April 29, 2016

Precious Metals Portfolio - April Results

April has ended so it is time to report the returns delivered by my Precious Metals Portfolio.

As the chart shows, the Precious Metals Portfolio returned 42.3%, 13 percentage points above the return delivered by the broad precious metals market, represented by GDX. 

Somebody could ask: "Why such a high return"? 

Well, I would answer:

1. I was lucky
2. Fresnillo plc, Newmarket Gold, B2 Gold, Fortuna Silver and Richmont Mines are excellent companies
3. Currently we encounter an ongoing rally in the entire precious metals sector. 

After many years of a slump we see a counter-trend reaction. Some people say it is a bear market rally while the other people say it is the start of a new bull market. 
I personally do not know whether it is a bear market rally or a new bull market. Only time will tell. In my incoming posts I will be trying to monitor this market and deliver some insight into current developments. Please, visit my blog. I hope it will be a practical lesson for investors and myself.

O.K. Let me present a few other facts related to my portfolio.

The chart below shows returns delivered by each stock:

As the chart shows, Newmarket Gold is a leader - this stock delivered a return of 179.6%, since December 16, 2015. I am sure that my readers know this company very well - I have written a number of articles on this company so it should be well understood why this company is one of the best in the industry. 

The last chart shows the performance of my portfolio, GDX and the broad stock market, represented by S&P 500: 

It is clear that the entire precious metals market was a big winner in the last months.

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