Gold Bell Rings: Vanguard Throws in the Towel on Precious Metals and Mining Fund

Vanguard just threw in the towel on a Metals and Mining Fund. It morphs into a Global Capital Cycles Fund.

Sentiment is not a timing mechanism, but gold bearishness is mounting in a market that has gone sideways for years. Vanguard couldn't take it any more.

This may not be "the bell" but it is a bell. Despite the recent declines, many miners are up tremendously off the lows.

Newmont

Hey, let's throw in the towel and buy something that trending. Maybe we should short gold. Facebook sure looked attractive last week.

Mike "Mish" Shedlock

Comments (16)
No. 1-10
shamrock
shamrock

Sorry man, Gold is dead money. You had your day.

thimk
thimk

surprised vanguard didn't add "blockchain'' to its moniker

AWC
AWC

Guess Wellington can’t do any worse than M&G has these last couple years. That said, the fund will still hold precious metals and mining shares. Now, other materials and infrastructure assets will be added. Don’t think I’ll sell just yet. But, yes, gold’s image is becoming more obscure everyday. And if some sort of deflationary liquidity crisis materializes, as some of these doom and gloom pundits predict, I can imagine shiny rocks as being the first asset to hit the auction block. Though deflation is about the last scenario I would anticipate in this fiat monetary system, so I’ll stay with the leverage offered by the miners, and the new fund.

Hollyberries
Hollyberries

Your comment somewhat confirms the thrust of the argument. I do not possess your prescience.I lack confidence in the financial system. US dollar strength could well continue but my base currency is not US dollars. As I see it there is a low volatility consolidation in the equities that portends a break, one way or the other. If it is down you have another opportunity to engage, in what I believe is termed "a washout" of weak hands, I think the overall set up looks quite promising for a medium term trade.