More on bonds and gold stocks
And other extreme hostility in the markets
We have previously invested in CDE and KGC. The prices have recently skyrocketed and are showing bearish signals of “topping out.”
There is also a possibility of foreign hostility with Canadian mining stocks in regards to the Greenland crisis with Danish and other NATO troops being deployed quite possibly against U.S. citizens, with management considering themselves professionals and viewing investors as consumers.
We're not getting good signals from corporate bonds as compared to government bonds either. The small to non-existent spreads of corporate bonds over government bonds indicates inherent risks associated with holding government bonds that are not generally acknowledged. These are the risks of identity verification, arbitrary civil asset forfeiture and being placed on various government ban lists. Meanwhile, mega-cap blue chip corporate investment grade bonds are being viewed equally with Treasury bonds as virtually riskless in the market, offering interest for the time value of money only.
Even so, bonds, gold, and gold mining stocks are a possible conservative investment thesis for a portion of a diversified portfolio. With respect to investments like gold ETFs and gold mining stocks, essentially keeping some gold locked up in vaults while mining more of it, and the same as with the long bonds and preferred stock, maintaining security of ownership, while collecting interest and dividends and redeeming principal.