blackrock gold and general

secondary

Hi all,

anybody has savings in blackrock gold and gen ?

since my purchase in feb. its down 14% which is very disappointing....

is there any reason to keep it there ?

what is the exit fee like ?

cheerfulcat

Hi there,

It's a unit trust - there's no exit fee. It's also a very adventurous fund, and a very focussed one.

I bought these 5 years ago so have seen a good bit of profit - I sold a third of my holding some months ago. I'm not sure that I would buy more at this point but being fairly bullish on gold and mining generally I will certainly hold on to the ones I have left!

LongTermLurker

secondary wrote: »

Hi all,

anybody has savings in blackrock gold and gen ?

I have and I'm seeing a 6% loss over the past year or so. I'm happy to keep it there.

dunstonh

anybody has savings in blackrock gold and gen ?

Its not savings. Its a high risk unit trust investment.

since my purchase in feb. its down 14% which is very disappointing....

Not unexpected though and 14% is not much of a swing for a fund with this risk rating.

Its the sort of fund you have a very small exposure to in your portfolio as part of the specialist allocation.

wombat42_2

Something you need to be aware of is that gold is very seasonal. Most years (but not every year) gold flies like crazy between August and March. Last year it certainly did. June and July are usually the low points.

Also, there is most likely a long term bullish trend (if you believe in the commodity supercycle).

It went up about 30% over the last 12 months in spite of recent losses.

purch

Government Health Warning

'Fashion' Investing is often highly volatile !!! and will lead to major fluctuations in blood pressure !!!!

I bought my first units in this Fund in 1993, and it has always been highly volatile.

It is influenced not only by the Gold Spot price, but my many other factors including the general resource sector, plus numerous outside factors such as the current electrical supply concerns in SA, shipping costs, storage costs etc etc.

The Fund has slightly underperformed it's peer's in the Gold Mining field over the last 6 or so months, which is unusual as over the years this Fund has generally outperformed.

secondary

slightly panicking after a fall of 29%.

are you all still sticking with it ?

dunstonh

secondary wrote: »

slightly panicking after a fall of 29%.

are you all still sticking with it ?

29% is still a minor fall for this high risk fund. Funds that a capable of doubling in the short term can suffer similar drops. Thats why exposure to specalist funds like this should be very small and you should rebalance.

wombat42_2

secondary wrote: »

slightly panicking after a fall of 29%.

are you all still sticking with it ?

Hi volatility for this fund (gold) is part of the territory. A 29% drop may be scarey but dont forget the seasonal element. Over the last 7 years the fund has averaged 14% growth between Sept and March and has risen during that period every year. Right now (August) is the end of golds usual slack period.

sdooley

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slightly panicking after a fall of 29%.

are you all still sticking with it ?



There is such a thing as cutting your losses. You may love your position but your position doesn't love you. The small investment elelmment (i.e. in the operations of efficient miners) is dwarfed by the speculative element (on the gold price and the political risk in areas invested in (not much good gold doubling in price again if your mines are confiscated by Mugabe)).

I say this because you are panicking. If this was only a small part (2%) of a balanced portfolio you would see it as a useful hedge and not a reason to panic.

wombat42_2

sdooley wrote: »

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slightly panicking after a fall of 29%.

are you all still sticking with it ?



There is such a thing as cutting your losses. You may love your position but your position doesn't love you. The small investment elelmment (i.e. in the operations of efficient miners) is dwarfed by the speculative element (on the gold price and the political risk in areas invested in (not much good gold doubling in price again if your mines are confiscated by Mugabe)).

I say this because you are panicking. If this was only a small part (2%) of a balanced portfolio you would see it as a useful hedge and not a reason to panic.

If you can afford to stick it out and take a long term view, there is no need to throw your hands in the air and give up. Gold has mainly risen over the last 10 years and there are sound reasons why the trend is likely to continue (decreasing supply, increasing demand, hedge against inflation etc). It is also par for the course that gold has severe short term dips.

Even now, gold is still up 20% over the last 12 months.