BlackRock Gold & General A Acc

The long and widely held consensus is that gold miners are a leveraged play on the POG.

However, over the last few years there has been a pronounced disconnect, as the producers have lagged the POG by a considerable margin.

Whether this will revert to the generally accepted state of affairs any time soon.......... ?

I bought this fund years ago when the gold price was near $500. The theory was that this fund would benefit from the rise in gold. It did but not to the same extent, the max I was ever up was 79% while gold tripled. i sold ages ago and have recently bought back in purely on theory that the fund is 16% lower now than when I bought all those years ago but the price of gold is still more than double. Does seem wierd that the fund price should be so low if its linked to the gold price but I can't confess to understanding all the background. I suppose I'm having a punt. Any views?

I do believe you were spot on with the call on gold shares.
At this moment in time, I think the world and his dog are bearish.
I personally think we are in for a good run starting around now.
Apparently a certain George Sorus is long gold stocks at the moment, so here's hoping!!!!
Good luck with your bets on India .

Hi Wilkine - yes I made profits just as you did via GPM , S&W Gold and Gen and BULL - but see my comment of 26 Oct. Since then top fund managers have unitedly warned that Gold is likely to be a disaster for a number of years, and Gold mining shares even worse. Sure there may be the odd uptick but concensus seems to be it will take many years to breach previous highs. And, even worse, for Gold mining shares - companies are even to having start paying dividends to keep investors onboard. If inflation returns Gold may get a pop, but not mining companies - they seem, now, to be correlated to the FTSE when that falls, but not to capture the footsie upside. I got totally out of all precious metal and resource stocks mid-2012 and have done very well indeed with AAS ANW and FSV (prefer ITs to OEICs for gearing and because of closed nature). FSV eg doing much better than Alex Wright's other (OEIC) fund Fid Small Companies since he took it on 9 months mths ago from Shah. Have been very heavily overweight Japan this year - LM Japan, BGFD and JOHCM Japan Hedged but just today have halved holdings in first 2, taking profits. I really believe it is hard at first to let go of old favourites, but I really think it is essential to do so and follow the general mantra of sell losers and run winners - always being ready to look for the next possibilities. My next pick is India with a little in HSBC GIF Turkey.

Just checked out my post from December, I was half right.
The general stock market had finished it's correction, but unfortunately most of the nucklehead investors think that bernanke has reversed the laws of economics.
So they sold off everything gold & silver.
I won't be joining them.

Well, hatterforever i'm still here, just sat sucking my thumb humming to myself.
I'll just say this though,timing is everything.
The gold & silver stocks that I own are very volatile, from 2008 to 2011, I made (give or take a few %), well over 500%. In that timeframe I took profits along the way and reinvested them when they started falling.
I don't think anybody thought they would get trashed as much as this!
I also spent some of the profits on refurbishing my house, and some ruddy good holidays.
So yes I have been all in for some time, and I'm hurting.
But I still would'nt be in something different, because when these things turn up it will be eyewatering!!
Western central banks are getting desperate.
My advise would be - any spare cash BUY in tranches all the way down.
Ps. Don't forget to sell in tranches on the way up as well.

Good luck.

New Sparky - what about your view rating a Buy at 896p, and before that a Buy at 1152p, and before that "time to start adding" at 1220p lol - you must be making a fortune ? And where has Wilkine gone - "all in" in December.

Gold Mining shares have been going down for more than 7 months since the $HUI hit a high of 530. With HUI 246 and Gold $1360 the HUI/Gold ratio is 0.18 below the low in October 2008 when the HUI hit 151 and Gold at $730.

My target low for Gold is $1124 this year, which is another 17% down. Gold Shares are a leverage Buy on Gold, usually by a factor of 2. So a further 34% fall in the fund price would give a target of 567p. So look to Buy in again at the 2008 panic lows of 500p.

For nervous investors wait to see if the fund can recover above 950p before adding new money to Gold Mining shares

The last time gold fell like this we were in very very different times and somewhat stable times relative to today.
The fall of the past few days has indeed broken the bull market in gold, but it has also occurred in an environment of high volatility which appears to be increasing. The instability of the markets today would suggest that asset prices could crash up or down at any time. The gold bear market may therefore be very short lived if global events change - and how much have global events been changing in the past few years?

See my comment of 26 October 12 - since then a couple of posters have "spotted the buy signals" several times. Very sad really, the last time gold fell like this it took 30 years to recover to the previous high - meanwhile Gold funds are a leveraged play on the gold price, with numerous issues related to the corporate governance, poor management, employees' exploitation etc etc consistently ensuring volatility. We all made substantial profits on these funds until a couple of years ago but, really, how long does it take for some to get the message - glad it is not my hard earned cash invested.

I have a very small profit left, thanks to the fact I mostly bought pre 2008....am still here but too scared to look. Can't understand why they are so low, am holding but not sure if that is suicide or not. My head tells me that they will go up again but my head feels as if they won't...hope everyone is ok, at tonights valuation I am sure I will be in a loss situation as well. This could take a long time to recover. Good post Sparky

Gold Mining shares have been going down for more than 6 months since the $HUI hit a high of 530. With HUI 271 and Gold $1370 the HUI/Gold ratio is 0.2 similar to the low in October 2008 when the HUI hit 151 and Gold at $730.

Blackrock Gold has only managed to get above 1700p twice in Dec 2010 and Sep 2011. The fund has closed below 1100p now for more than a few weeks, so look to Buy in again at the 2008 panic lows of 500p. I will look to average in over the weak summer months.

For nervous investors wait to see if the fund can recover above 1050p before adding new money to Gold Mining shares

Invests principally in miners, not physical.

gold off 2%, BlackRock Gold & General up 2.7%.

I'm confused...

Here's something to think about...

Chart Blackrock Gold and General vs Jupiter Financial Opps fund over one year.... big run up in financial's.

If europe's problems are reigniting these funds should invert.

Gold Mining shares have been going down for 5 months since the $HUI hit a high of 530. With HUI 354 and Gold $1580 the HUI/Gold ratio is 0.22 . The all time low was 0.21 in October 2008 with HUI at 151 and Gold at $730.

Blackrock Gold has only managed to get above 1700p twice in Dec 2010 and Sep 2011. If the fund closes below 1100p for more than a few weeks, we may get an opportunity to Buy in again at the 2008 panic lows of 500p

So I will look to average in over the weak summer months.

For nervous investors wait to see if the fund can recover above 1200p before adding new money to Gold Mining shares

The shares are now around 10% lower than they were before being tipped by iii...

Look at the performance. 4th quartile over past 2 years. So maybe a good buying opportunity
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Investors who put their faith in the BlackRock Gold & General fund a decade ago have more than tripled their money on the back of global enthusiasm for precious metals, which advisers still believe are well placed to deliver solid returns over the next few years.

The £2.9 billion fund, launched in 1988 and managed by Evy Hambro since 2009, aims to achieve long-term capital growth, primarily through an actively managed portfolio of gold mining, commodity and precious metal-related shares.

The portfolio typically holds between 50 and 80 stocks, and strict limits are in place dictating that no single holding can account for more than 10% of the portfolio. This helps to ensure the fund has a diversified spread of assets.

The fund's 10 biggest holdings account for just over half the assets under management, and include names such as Newcrest Mining, Goldcorp (GG), Randgold Resources (RRS) and Eldorado Gold (EGO), as of 31 October 2012.

Country and sector weightings are predominantly a product of stock selection. At present, this means 56% of the fund is focused on North America and 20% in Europe. Other areas, each worth less than 10%, include Australasia, Latin America, South Africa, Russia and China.

Patrick Connolly, spokesperson for AWD Chase de Vere, says: "The BlackRock fund provides exposure to gold mining shares, which, despite a recent bounce, still look attractively priced when compared with the price of gold, and so could be positioned to perform very well."

I don't know anyting about that, but how come and Income version produces no income, i.e. there is no yield figure on this site?

I keep checking if anybody posts on this board, but nobody seems to have any opinion on where we are at the moment.
So I will have a go.
Since I said I was all in on Gold & silver stocks, the market has drifted sideways,
But if you look at various Gold stock indices, all of them have positive divergences,
The RSI & MACD have all turned up while the indices have meandered sideways to down a tad.
This has happened since November, so fingers crossed we might be about to turn up.
We live in hope.

Good luck & happy new year.

The number of "specialist" funds to choose from is now getting very silly, almost as bad as the number of ETF's ... Now more funds to choose from than stocks... more bloat from the financial sector.


1. Click chart

2. select from "compare against" ... axa biotech

3. select 5 year timeframe

A nice little runner.

Back in May I started adding to my Long Term Position at 1220p. With the plunge in the $HUI down to 441 this week, the HUI/Gold $1713 ratio is back to 0.26. If Gold can hold above $1665 (200ema) for the next few weeks, then the downside in Gold Shares should be limited to 10%.

Any panic selling next week will be the opportunity again to accumulate sub 1200p in this fund.

Back on 25-10-12 I thought we might go down another 4%-5% on HUI.

Well we are here, lets hope thats the bottom.

Golds up tonight as I type this, so hopefully, stocks will follow shortly.

What I have watched over the last week or so has convinced me that the time is here to be all in on Gold & silver stocks.

The general stocks have taken a bit of a beating, but the Gold stocks have performed pretty well.

I reckon the general stock markets have finished thier corrections now. If they start rallying from here it should be very rewarding for our sector.

November is a very good time (usually), for Gold stocks so IMHO it's time to load up.

good luck.

For all those who own this Fund, and other Gold Funds, I recommend a read of Hugh Hendry's opinion - re-iterating the writing that has been on the wall for these funds over the past 2 years (even though, of course, tne Fund Managers always point to the "disconnect" with the price of gold that is to be imminently corrected - see link http://www.investmentweek.co.uk/investment-week/news/2220120/hendry-owning-gold-miners-is-insane

2partacus, a couple of the stocks i'm referring to are Canadian stocks I buy online at Hargreaves lansdown - Fortuna silver, and Premier Gold. I hope this helps, there are a few more but I pay a subscription to a newsletter, so I wont be giving anymore away. sorry.
(At the time of writing this they have popped up a bit last night but are still very attractive).
Good luck.

My Dear Friends,

1. The entire reason that I launched into the explanation of spread trading was to demonstrate how it is used to manipulate markets.
2. Recognizing the multiple blocks at $1775 and $1800, it was obvious a line was being drawn in the sand.
3. In that market situation a reaction was reasonable to anticipate.
4. I wanted to drive home to you the fact that all the market drama as seen today is manufactured by the gold banks.
5. QE cannot stop or the economic implosion would blow up your computer screen.
6. If some nitwit Chairman tried to stop QE you would have a few days of dollar strength followed by a collapse of the currency based on the economic implications.
7. Then gold’s highest possible estimates would come into focus as the downward spiral already in place in the Western world did in fact present itself as a black hole.
8. The event horizon to a total collapse is QE to infinity, as was anticipated.
9. QE’s focus is to prevent financial balance sheet collapse both privately and publicly internationally.
10. Jobs are only created the way Roosevelt did it, and that was by Federal invention of jobs if required when conditions are as they are now. Remember the conservation corp and all the make-work jobs that were invented in the 30s?
11. The thought that any candidate can change the present situation is intellectual garbage of those who do not even know there is economic law. Once violated, those laws brings consequences.
12. This, like all reactions, will be completed when it is completed, and that will be soon.
13. You could see the spread cartel working all day.
14. Do not be stampeded into turning over your gold investments to the greedy shorts now open mouthed and waiting like a wolf for its prey.
15. Simply ignore this, taking my hand in the knowledge that this is no different from the many similar plays made by exactly the same people all the way from $248 to the $1900s.
16. Email me if you are confused or simply need my help.
17. I will personally return your communications, answering your questions.
18. Gold is going to and through $3500 and those that find this humorous are the same people that laughed and scorned me at $529.40 when I told you that the very long term breakout had occurred, the strongest magnet among all was $1650 and gold would trade there and above.

Please shut off your quote machine and email me before your emotions drive you wild and directly into the mouth of the wolf, the short spreader.

Respectfully,
Jim http://www.jsmineset.com/

Care to share ;-)

Some of the stocks I took profits on, are down enough for me to buy back into, so maybe now might be a good time to start buying in tranches.
I still believe however that we could could go a bit lower from here, (hopefully only 4 or 5% for HUI).
Good luck.

The correction I thought was coming is here.
I reckon a good point to start buying Gold stocks again is around 450-460 HUI, 47-48 GDX.

Thats not far from here, so if we are in a buy the dips mode now, I see no more downside than this.

This fund has held up quite well so far, which gives us hope.

One caveat ! is if the general stock market rolls over, it could take Gold stocks with it.
Then all bets are off.

Good luck.

IMO, this fund should go to an all time high @ $2000 gold.
mainly because it would signal that the floor for gold is a lot higher than presently, and it should accelerate the investment into gold & silver stocks.

I also think sentiment is turning for the better, regarding gold stocks, ( lets be honest it could'nt have got much worse).
Thanks to Mr Bernanke I think the floor for gold has already been raised.

I think anything under $1700 is a screaming BUY.

The only thing wrong with this fund IMO is, its probably too big to move in and out of stocks as swiftly as a smaller fund.

But it should still be a good performer.

So when gold hits $2000 where will this fund be, because it seems to overeact to downward pressure and under react to upward movement. Anyone got any ideas on this please?!

We all seem agreed then...we don't really know whats going to happen except physical gold is the ultimate safety and we should grow our money with several ups and downs as the gold price surges ahead!! But when..is another thing!!

I agree, when Gold & the shares are rocketing higher I will step aside with my fill (hopefully).
My ultimate target for gold is $7,000 - $10,000.
That figure is based on the amount of dollars already in the system.

As for the IMO... imminent correction, it might be sharp and over very quickly, or it might never happen ,(NOT).

Holding some cash ready, makes me feel a little less worried about it happening.

You might be right - however, 2 people asked me how to buy gold today - I'm waiting for the frenzy to start and then will drip out until I only own some miners and all my Phys - (phys will be kept just in case the very very worse happens)...;-)

And down they go!! But for how long? Market timing is not my thing..but they are still undervalued compared to gold and where they were trading a few years ago.

All the sell signals are FLASHING in the Gold stock indexes.

HUI, XAU, GDX GDXJ.

All are well overbought, all have daily rsi's in the 80's, the hui is up 7 days in a row, all are well above their 200 day moving averages.
I'm not saying these things are going to crash, but the least I see them going back to is their 200 day Moving average.
So personally I have taken a little more of the table.
So I can buy more when they do correct, which I assure you they eventually will.

I hope to start buying again when the RSI's on the HUI, XAU and GDX, reach just around 60 to 50. on the daily chart.

My target of mid fifties on the GDX has been reached.

Personally I hope they correct now, because the higher they go from here, the harder they will fall.

(Just my opinion)

good luck.

Got suspended today as an announcement is due. Could lose the lot if bad announcement. This is the problem with individual shares. As I had lost so much it wasn't worth selling. I am hoping for good news but not expecting it...we will see.

do you think norseman will come back if POG goes parabolic?

I do hold several small shares as well, Arian, Fresnillo SNRP SLW Yamana Medusa and several more. Like Wilkine I do not have a huge amount of time. Going alone can cost..I have losted 95% on Norseman..thankfully because I spread my risks and strategy this has not hurt me too much..but all miners have been smashed over the last year. Hope this helps but as you can see I really don't know the best strategy and that is why I do a bit of everything!!