I’m sure you noticed that precious metals have been performing poorly. Gold was at $1,900+ back in 2011 and at the moment of writing, it’s at less than $1,400. Silver fell even more percentage-wise compared to the highs.

In my opinion, lots of gold investors made a huge mistake: they didn’t understand that at such prices, precious metals are risk assets and not safe havens.

There’s nothing wrong with risk assets.

They can generate higher returns but on the other hand, there’s more risk involved.

What’s really dangerous is investing in risk assets without admitting to yourself that you’re investing in risk assets.

In other words, investing in risk assets and thinking that you’re putting your money in a safe haven.

In my opinion, precious metals will correct some more this year and maybe even slightly beyond but then resume their uptrend.

This post isn’t about me bashing precious metals, I have nothing against them.

In fact, I wouldn’t be surprised to see gold at $5,000 3-4 years from now.

Just like I wouldn’t be surprised to see gold at $500 8-9 years from now.

What I’m trying to explain is that they’re risk assets and that you should tweak your approach accordingly.

I know this post isn’t about domains but as a domainer, keeping your eyes wide open and analyzing other types of assets is pretty important, so I’ll write posts like this one every now and then.