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TheDumbMoney (67.34)

PM versus Gold? Phillip Morris is Winning



March 12, 2012 – Comments (4) | RELATED TICKERS: PM , GLD , SLV

At various times I and the proponents of gold have debated the merits of holding PM, which does all of its business in non-U.S. currencies but reports earnings in dollars (and does some hedging), versus gold.  This is a continuing story.  I post in the full knowledge that after some reversal in 2012 or 2013 I'll get slapped around by frankydontfailme or someone. 

Anyway, during Summer 2011 I believe it was pointed out to me by Christopher Barker that gold was crushing PM.  So I fear I must point out that as of now, PM is beating gold (GLD) by over eighteen percentage points, cumulatively, from the date when I first entered PM in CAPS (2/22/2010), through today's close.  (And that is not including the dividends PM has paid during that time, let alone the gain if you have reinvested dividends, as I have done.  GLD has paid no dividends.)

To be fair, during this time period, silver continues to outperform PM by an even wider margin, of a little over 50%.  I do not expect that to continue forever, but it is what it is at this time. 

Enjoying the apocalypse,


4 Comments – Post Your Own

#1) On March 12, 2012 at 9:03 PM, Frankydontfailme (28.83) wrote:

As some have of noted in the past (skypilot if I remember correctly), cigarretes verse gold is a moot point. Both have been used as currency in the past, and will likely maintain value as currency in the future (think prison or the army).

I say own both. 

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#2) On March 12, 2012 at 9:34 PM, XMFSinchiruna (26.55) wrote:


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#3) On March 13, 2012 at 1:03 PM, TheDumbMoney (67.34) wrote:

Franky, but Phillip Morris could theoretically print virtually unlimited amounts of cigarettes!

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#4) On March 13, 2012 at 1:40 PM, leohaas (30.08) wrote:

Also, old cigarettes taste different.

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