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.

Jackula
Jackula

Its beginning to look like the latest debt fueled speculative asset buying orgy is at about 2am, the latest hookers and blow deficit exploding tax cut extending the party a little longer. There will be a time in the next few years where having a chunk of PM in the portfolio will be very financially rewarding.

Stuki
Stuki

It's truly amazing how much wasted effort useful idiots are willing to expend, on what amounts to nothing more than simply pulling a slot machine lever.....

Forever and ever convinced that the reason the Casino is slowly beating them over time, is because it is somehow better at lever pulling than they are. And that, if only they can be smart enough to discover the right "system" for lever pulling, or pay a Great Leverpuller to pull for them, they too can be smart lever pullers. Just like the Casino is.

ML1
ML1

Gold's problem is that it does not give dividends... End of 2015 was a good time to invest in gold mining stocks.

Roger_Ramjet
Roger_Ramjet

Well, Barron’s just ranked Vanguard as the “Top Robo Advisor” in its most recent issue. A kind term for mindless, automatic momentum investing which plows more investor savings into stocks like TSLA (no earnings, massive cash burn trading at $300/share) or AMZN (trading at 300X earnings) and other massively valued stocks. Yes, it generally works on the way up, but then you have days like FB, NFLX and TWTR when reality rears its ugly head.