Don’t Get Worked Up over Gold’s "Recovery"The jury is still out but... gold hasn’t sparkled lately.
Precious metals mavens got very excited after the price of gold bounced back into the $1400s from under $1,200 per ounce.
April’s cruel, still unexplained plunge spawned a nice uptick before suffering a further decline in late June to a three-year low.
The longer-term view only appears more pleasant if you go back to at least 2009. The price of gold today sits exactly where it did in mid-October 2010.
Anyone holding gold while shunning stocks has earned nothing for almost three full years. Meanwhile the S&P 500 has returned almost 45%.
The Gold Miners ETF (GDX) did radically worse than the metal itself. It lost more than 49% of its value even as the underlying gold price made its round trip to break-even.
Anything is possible in terms of the future. Perhaps gold and gold mining shares will be tomorrow’s superstars. Looking backwards, though, that was a very poor place to have been invested over the past three years.