Oakley: Keep Bullion and Cut Miners as Tech Stocks Slide

Ted Oakley, founder of Austin, Texas-based Oxbow Advisors, said his firm is not selling gold bullion but has reduced its holdings of mining stocks and moved cash into short-term Treasuries, as tech stocks took a heavy blow. The Nasdaq 100 fell as much as 5% on November 5, and the index of the largest chip companies dropped 36% below its June record, while Nvidia shares fell about 8%.

Speaking to Kitco News, Oakley said he is selling Google and Microsoft shares, and when asked who holds large tech stocks in retirement accounts, said: "If I were them, I wouldn't buy any of them." He added that his firm profited from the biggest energy-sector winners, cut mining stocks, and expects a weaker economy in 2027 that paves the way for rate cuts.

He explained that his firm never sells bullion gold, but has reduced mining stock exposure over the past two months because they fall harder than the metal itself. He cited 2008, when gold fell more than 20% while mining stocks fell more than 60%. He said the metal may not protect investors in a broad selloff, because everything falls together, including gold and miners.

Gold was trading above $4,120 an ounce on November 5, after rising more than $120 in the previous session. Oakley believes rate cuts by mid-2027 will support gold, while the market points to possible further hikes in December and March. Investors continue to watch inflation and jobs data, amid a shift in portfolio allocation away from tech stocks.

What do these terms mean?

Mining stocks: Shares of gold mining and extraction companies, which usually move more than the metal price itself.

Short-term Treasuries: Government debt instruments maturing in a year or less, seen as a relatively safe haven.

Bullion: Gold in physical form, such as bars and coins, as opposed to paper holdings.

Chip stocks: Shares of semiconductor manufacturers, one of the sectors most sensitive to the tech cycle.