Blackrock gold and general - worth investing now after the drop?

danfitzjohn

Hi all

I'm thinking of buying some blackrock gold & general as I think they've got potential and seem to be at the bottom (this is my gut feel and without any real logic)

Am looking for any thoughts as to whether my gut feel could be correct? I'm looking to place around 10% of portfolio in there..

Dan

planteria

i have the S&W fund in my ISA. if i didn't have it already, i would buy now. i think gold will rebound, and gold miners with it. holding for the medium to long-term.

verybigchris

danfitzjohn wrote: »

I'm thinking of buying some blackrock gold & general as I think they've got potential and seem to be at the bottom

I wouldn't call it a bottom when it's gone up 18.6% in the last 10 days.

Doshwaster

I've been a long suffering Blackrock Gold & General investor for many months and was down over 50% at one point but it looks like there may be light at the end of the tunnel. In fact, I'm considering adding to my holding.

Good news all around for gold funds:

http://www.fundweb.co.uk/fund-news/gold-funds-enjoy-long-awaited-bounce-in-july/1075265.article

somethingcorporate

Both my wife and I are nursing 40% losses on this fund so glad to hear there is going to be a reasonable chance of a bounce-back!

Good_Goose

somethingcorporate wrote: »

Both my wife and I are nursing 40% losses on this fund so glad to hear there is going to be a reasonable chance of a bounce-back!

Any asset is only worth what someone will pay for it.

Sometimes its wise to sell at a loss.

Doshwaster

Good_Goose wrote: »

Any asset is only worth what someone will pay for it.

Sometimes its wise to sell at a loss.

In some cases it is indeed wise to cut your losses. However, in the case of this fund my investment is relatively small and it's not money I especially need so I'm happy to ride things out in the hope that there will be long term gains.

Contrary_clive

I also have paper losses but continued buying as those losses increased. When buying such a fund you need to be prepared for the volatility. No-one knows how QE is going to pan out. It might be the case that gold funds significantly outperform should there be a fall out. For me it's just a shame that the AMC is so pricey.

verybigchris

Down about 33% since the OP posted - anyone fancy catching this falling knife?

Ryan_Futuristics

It may well rally at some point, but amazingly it still doesn't look particularly good value

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR04RTS&tab=3

Often what I look for is a P/E ratio lower than projected earnings growth - but it seems everyone just wants to own mining stocks

I hate selling at a loss, but I only had a small holding and there was no good reason to keep it

MARTYM8`

Isn't it a good hedge for monthly savings now given the drops? Seems to me this fund moves the opposite direction almost to the wider stock market - so if stocks fall (they remain at record high) this along with the price of gold may rebound?

So its a good accompaniment to a balanced portfolio?