Why We Recently Sold Some Gold Stocks

Daryl Wilson

Affluence Funds Management

Late last year we identified gold stocks as the greatest contrarian play of 2016 and made an investment in a Gold Miners Fund. Sentiment and the gold price both rapidly improved from January 2016 onward. The value of the investment took off and by July 2015 we were up over 140% on the purchase price. While we still believe in Gold stocks over the long term, we recently decided to take some profits on the investment. Here’s why: - The market had priced in many of the positive factors we identified in our original thesis. - Mainstream fund managers were beginning to add gold miners to their portfolios. - Positive articles began appearing in a number of mainstream and financial papers, indicating the herd had caught on. - Finally, and most importantly, sentiment was sky high and traders held record long positions. We felt that prices had recently moved some way ahead of fundamental value. Read more, including what we switched into, here: (VIEW LINK)


2 topics

Daryl Wilson
CEO/Portfolio Manager
Affluence Funds Management

Daryl has over 25 years’ experience in finance and investing. He formed Affluence to provide investors with regular income and long-term capital growth by investing with some of the best fund managers available in Australia.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.