Saturday, July 30, 2016

My Precious Metals Portfolio - July Update

July was another month when my precious metals portfolio delivered a positive return. This time its value increased by 18.7%:

What is more - as usual, the portfolio delivered better results than the broad precious metals stock market, represented by GDX (an increase of 10.4%).
I think it is the best evidence that Fresnillo, B2 Gold, Newmarket Gold, Fortuna Silver and Richmont Mines are the best in class miners. 

Further, the chart below shows the way the portfolio and its peers performed since inception:  

Well, my picks returned 106.7 basis points more than GDX. The broad stock market, represented by S&P 500 returned nearly nothing. It is clear what works at the moment and what does not. 

Another interesting chart - it seems that since inception all stocks, apart from Fresnillo, delivered more or less similar returns (around 250%):

Of all my picks only Newmarket Gold released its 2Q 2016 results (I am going to present an update on this company soon) - they were excellent.
However, one thing was especially clear - the whole Newmarket story is about its Fosterville mine; the other two operations are becoming nearly negligible, which is definitely not a positive factor in the long-term.

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