CUR - Gold Is No Longer Safe: Why I'm Taking Profits On Gold And Miners

2025-04-23 08:40:00 ET

Summary

• We have significantly reduced our gold and gold miner positions due to gold being fundamentally overvalued and having an unattractive reward-to-risk profile from a technical perspective.
• Gold's current price is nearly double its all-in-sustaining cost of production, driven by unreasonably high inflation expectations that are unlikely to materialize.
• Technical analysis indicates gold is extremely overbought, with recent market action suggesting waning demand and the potential for significant price declines.
• Investors should consider selling gold positions and gold miners, as both are at risk of substantial declines if gold prices fall.

At Successful Portfolio Strategy , we have until recently been very bullish on gold and gold miners, having initiated large positions in early 2024 and adding in late 2024. Due to large capital gains, these positions grew to well over 30% of our portfolio. However, on April 22, 2025, we cut our positions to around 5% of the portfolio. In this article, we explain why. The bottom line is that gold is now fundamentally overvalued, and from the standpoint of technical condition, it’s reward-to-risk profile has become unattractive....

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