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If gold is supposed to be an offset to market crashing ...


(jim)




If gold is supposed to be an offset to market crashing, why did gold mines lose as much or more than other stocks during the crash of '08?




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If gold is supposed to be an offset to market crashing ...

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May 26, 2010
Stocks Simplified Writes
by: Shaun

Gold mines are still stocks. They may have gone down for a variety of reasons overvaluation, falling company earnings, etc.

What would be a better offset to a market crash would be the actually commodity itself. If you look at GLD which holds gold and tracks the commodity it did much, much better than the rest of the market in 2008.

GLD was a sort of safe haven for investors during the crash and did live up to its name.

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