gold news

 Hello everyone, welcome to Baldu Guy Money. And so far in 2025, gold and silver are outperforming basically all other major asset classes with growth over the past 12 months outpacing the S&P 500 and even techheavy NASDAQ in the heat of an AI frenzy. But there is one sector, one business class that metals are not outperforming and that is the mining companies that dig gold and silver out of the ground. And as you can see here with the large miners ETF, the GDX up more than 75% over the last 12

months despite amazing performance of both gold and silver over the past year. The results aren't really even that close. In fact, the miners are performing so well that the fourth best performing company so far in 2025 of the other 503 companies that are listed on the S&P 500 is Pneumont Mining. It's ahead of companies like Nvidia, Oracle, Netflix with the value of its stock more than doubling so far this year. And Pneumont by the way isn't alone in this. It's the entire mining sector that is

really booming right now. And it's all thanks to a perfect combination of low oil prices, high metals prices, and now the possibility of lower interest rates on the way that will make it cheaper for all companies, including mining companies, to service their debt. But this bull market for the mining stocks and the mining companies and the major potential for it to continue over the next few years is also attracting a lot of bad actors to the space including fake gurus and scam companies promising

huge returns. And it's this type of shady behavior, which has always existed in the business, by the way, that compelled Mark Twain to say years ago, that a mine is a hole in the ground with a liar on top. So, in this video, I want to cut through the confusion and answer a few simple questions for you all. Starting with, what is better to own, physical metals or mining stocks? And if it's both, what kind of mix should a person consider? Once that's covered, I want to show you all how you can protect

yourself from buying mining stocks that have no real value. And I will be revealing two stocks that I own. And no, this is not a sponsored mining ad video. I don't do those kinds of videos. And we'll finish this video off with a discussion on when to sell your metals and your mining stocks to make it easier for everyone who is planning on profiting from this bull market and using some of the money maybe to take a vacation or to buy a home. So, jumping in, I've gotten a lot of questions from

viewers over the past few weeks asking me if they should sell their gold and silver to buy mining stocks due to the amazing gains we're seeing them make. And in some interesting cases, people are asking me if they should borrow against their metals to legally avoid having to pay capital gains taxes so they can use the money to then buy mining stocks. And what I've said to them is, and what I want to repeat to everybody watching this video today is that you need to understand how these two things, physical metals and the

mining stocks are totally different from each other. Starting with the fact that gold has significantly outperformed the mining stocks since the launch of the large minor ETF, the GDX in 2006. In fact, despite incredible performance over the last year or so, the GDX is only up 93% since its launch, whereas gold over the same period of time is up 462% as you can see in the image here on the screen. And there are reasons for that. Starting with the fact that gold has no counterparty risk, which means the value

of it is not directly correlated with the price of oil or if the CEO is doing a good job managing it. Gold is neutral. It has no CEO. It is money and central banks keep buying it whereas they don't buy mining stocks. Now, as far as I see things, that is reason enough to keep your gold and treat it not as an investment, but as a savings plan or insurance policy. But even though I say keep your gold, and it applies to your physical silver, too, by the way, I can't help but look at this data and see

major potential for more gains. gains that will be larger than the ones on the metals themselves as performance starts to catch up to metals prices. And I say that while factoring in where it is I think gold and silver prices are going as well as how higher prices have already offset a lot of the cost risks these mining companies had including oil price which was a significant issue for these companies in 2022 because oil is one of their biggest expenses. But as you can see here, oil has come down by

almost 50% since 2022. And again, with the economy weakened and metals prices poised to move higher, it's easy to understand why I started buying mining stocks in 2023 and why I still think there is a lot of upside potential on them that people can take advantage of with cash positions, with 401k money or IRA money, but not by selling physical gold and silver. And for complete transparency, as that is very important to me, as all my regular viewers will know, this is why I haven't touched my

physical precious metals stack. In fact, I've only been adding to my physical precious metals stack while taking separate positions in the mining stocks with cash that I've traditionally had allocated for stocks since, you know, that I took my money out of some of those riskier S&P 500 stocks back in 2023. And as you can see here, when it comes to the split of this money, about 81% of the current dollar value of my physical metals plus my mining stocks is in the physical metals themselves with

19% in the mining stocks. And I think this is a great conservative allocation for people considering the mining stock trade. Now, you don't have to take my word for it. In fact, this video is also about verifying what I say and what others in the metals space are saying in their videos. And although most artificial intelligence AI models won't provide financial advice, luckily the sponsor of this video, which is investing.com, specifically their investing pro tool, provides you with everything you need to know on topics

related to investing, including answers to questions like what is the right allocation between metals and mining stocks? And as you can see here, it agrees that a conservative approach, which is what I advocate for, is 80% in the physical metals and 20% in the mining stocks. And although this is just a snippet of the full answer, it also gives you reasons why it has given you this answer as well as the pros and cons of owning miners versus physical precious metals. Now, the reason I think using something like Investing Pro is so

important is because mining stocks have performed badly since 2011. Even underperforming the S&P 500 on a 5-year time frame, despite strong metals performance, as you can see here in this chart, also from the Investing Pro platform. And as a consequence of this bad performance, most people who may know gold and silver very well have no clue what they're doing when it comes to mining stocks or how to profit from them. And many are sadly falling victim to shady exploration companies that reach people with paid advertising on

social media preaching how safe the stock is. And let me know if you've heard this argument before. how safe the stock is because insiders own so much of it only to have yourself get dumped on by those very same insiders who own so much of the stock after the advertising campaign has finished. So, as promised, here are three mining stocks. Two of them I own and one of them I don't. And you're looking at them in the Investing Pro watch list. This is what the dashboard looks like when you add a

stock to it. And as you'll quickly notice, two of the stocks have good ratings. They are Pneumont Mining and Pan-American Silver. Both have overall health labels of great, which tells me these are solid companies and that I should benefit from them if the metals bull market continues as well as the bull market in mining. But the other one I have selected, which is a company called Axecap Ventures, does not have that same health rating. In fact, its rating is weak and there is a significant downside risk identified on

the stock as the tool says it is overvalued. Now, that's not to say that the company is doing something wrong or that the price won't go up. Maybe it will, especially as metals prices rise, a rising tide lifts all boats. But this is a company I would never personally own. And by using this tool, if you're just a casual investor who watches channels like mine and you want to check to see if the stock from the paid advertisement you've just seen is any good, then this is really the easiest

way for you to get a quick idea of the risk level you're taking on by owning it. Now, taking this one step further, I've just given you two names that I own. And whether you know it or not, that is a great launching pad for people who want to own miners but don't know where to start. Because if you click on one of my names, one of the ones I've selected here, and I've clicked on Pan-American Silver, Investing Pro gives you a total breakdown of the company, including this awesome compare feature.

And what this does is it shows you other legitimate companies that are comparable to a good company like Pan-Amean Silver. and it shows you what the names are and what it thinks has the best chances of performing well moving forward, which in the case of the table here for Pan-American Silver's peers, it suggests that B2 Gold is currently undervalued, while Oceanana Gold and Kin Ross Gold have the best overall health. So before I move on to my exit strategy and my profit taking strategy, I just want to

encourage everyone to consider signing up for a tool like Investing Pro. Not because they sponsored this video, but because I chose them for a partnership because I think this helps take some of the guesswork out of investing in good mining companies. It allows you to ask questions that a typical AI won't answer, and it can ultimately protect you from buying some junk that is advertised on social media because you shouldn't be experiencing losses in a mining bull market. So, if you want to

join, the discount is 50% plus an extra 15% on top of that. And as the image here suggests, it expires in about 40 hours or so from the time I'm posting this video. But if you're investing thousands of dollars, maybe tens or even hundreds of thousands of dollars in the stock market, this is a small and worthy investment to make. And the link to join to get this discount is in the pinned comment and video description below. Now, coming to this video's viewer question. And remember, I answer one

viewer question in every video I do. So, please don't be shy. Leave your questions and comments below. I read them all. And this one ties in well with the overall topic of this video because at some point you will want to sell and take some profits potentially to buy a home or maybe just to invest in your lifestyle. Whatever you choose to do, that's up to you. And Richard Love, who has been a longtime viewer of mine, I've seen him in the comments section plenty of times. And he's a real man, as you

might be able to see here. He's got the kilt on. I respect that. and he wants to know if I will ever do a video on when to sell and possibly rotate into other unloved investments. So, without making him wait, the answer to that question is yes. I am not a bye-bye bye guy. And in October of 2021, when I was still wearing leopard print Lacost shirts here on YouTube, I think I proved that when I said to sell because a 25% correction in the S&P 500 was coming. Now, how that applies to what we're talking about in

this video is like this. When it comes to my physical gold and silver, there are basically two options. Option number one is I will slowly sell my stack off in retirement to cover my living expenses. And I think that's the number one reason why people need to own gold and silver. They need to have it in preparation of old age, in preparation of retirement in order to secure themselves and protect themselves from inflation. Option number two is I'll simply leave it all behind for my children. That said, when it comes to my

mining stocks, that is a different story altogether. And I am looking to take profits on these stocks at some point in time in the future. And a starting point for me to take a little profit, maybe 10% off the table will be around the $50 per ounce level on silver. Now remember, we still have 16% to go until we get there. And that's probably another 25% upside on silver miners from here, maybe even 30%. And although I believe we will go through that level, we will go through $50. I think we're hitting $60

next year, there will be heavy resistance at that $50 per ounce level because it's a very significant level going all the way back to 1980. So if we get there, I will take a little profit and if we pull back after that, I will keep some of the profit for myself and use some of it to buy back the stocks that I sold. Now the next thing I am looking carefully at is the gold to silver ratio. And that measures, as many of you know, how many ounces of silver you need to buy 1 ounce of gold. And as

I've said in past videos, a sign of a market top is a major crash in the gold to silver ratio. And although we are pulling back significantly right now, some people are saying we're reaching the top, we are still significantly off the 5-year lows for the gold to silver ratio, which were in the low60s. And once we get back there in that low60s territory, that's a place I would be looking to take at the minimum my original investment in mining stocks off the table, if not a little bit more. So,

Richard, I hope that at least in part answers your question. Thank you very much for submitting it, and thank you very much to all the people who made it to this point in the video. Please remember if you enjoyed the content to leave a like below and leave me a comment with a little bit of feedback about what you thought about this topic and what you thought about this bonus video. And since I'm mentioning t he bonus video, I also want to say a big thanks to investing.com with their investing pro tool. It is a great tool

and right now it's not only great, but it's also cheap. So, if you want to take advantage of that, please remember to use the link in the pinned comment and video description below. And once again, thank you because this video, which I think is an important video covering an important topic, would not have been possible without them. Now, as I say at the end of all my videos, I want to wish you all a great week ahead and remind you all to take care of yourselves and take care of each other. See you all in

the next video. Goodbye.