Apr 10, 2018 Guest(s): Kevin O'Leary
Investors are better off holding physical gold rather than mining stocks, according to Shark Tank star and chairman of O'Shares ETFs, Kevin O'Leary.
O'Leary said gold miners have had a track record of bad management and poor cost control that have led to underperformance relative to physical gold. The Shark Tank investor himself maintains 5% of his portfolio in physical gold, using a combination of bullion and SPDR Gold Shares (NYSE: GLD), the world's largest gold-backed exchange-traded fund.
"The history of mining has been abysmal," O'Leary told Kitco News on the sidelines of the "Three Sharks In A Castle" symposium. "The value of the commodity is whatever it is every day. I don't need to have a manager in the middle screwing up his capital cost allowance, not controlling his costs."