Precious Metal mining investments

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Vanmax
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Precious Metal mining investments

Post by Vanmax »

Probably a lot more volatile than most investments discussed on this board but I am interested in putting more money towards precious metal mining companies in the near future. Sprott has typically been the most recognized but seems like the wealth management and fund management divisions have been split and sold. Mutual funds of previous years are probably no longer the same. I've had good success buying smaller companies in this sector but want to retire my endless research and let someone else handle it.

Does anyone know of any good ways to approach investing in this sector? I know a fund call CDF has been successful but it's based in Holland and likely not efficient to buy from Canada.

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Thegipper
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Re: Precious Metal mining investments

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I wonder about investing in this sector. I suspect that over 5, 10 and 15 year periods gold has significantly underperformed the broad market index. When you set aside the hype what do you really have?
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Wallace
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Re: Precious Metal mining investments

Post by Wallace »

Agree with thegipper. I did well with precious metal funds in the early 2000s and they kept my head above water in the 2008 crash, but the banks found a way to devalue the price of gold, through gold certificates - pieces of paper that "guarantee" you the equivalent in gold. The guarantee of course is hollow. When one European bank had a run on gold certificates during (one of) the Greek crisis they couldn't buy the gold to replace the certificate so they simply substituted the value in Euro currency. Also many of the gold bullion companies that store gold lend it out, which artificially increases the supply and keeps the price low. I don't see the POG going high any time soon.
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Vanmax
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Re: Precious Metal mining investments

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Thank you for the replies. Nobody here a gold believer? I am planning ahead for a balanced early retirement plan but want to have an aggressive piece invested in precious metal mining companies. There must be a good vehicle. Not that interested in just buying the gold miners index, but still open to it.
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adrian2
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Re: Precious Metal mining investments

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Vanmax wrote: 05 Sep 2017 12:36 Nobody here a gold believer?
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I own some ABX (stock and options), plus some GDX calls.
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FinancialDave
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Re: Precious Metal mining investments

Post by FinancialDave »

Vanmax wrote: 05 Sep 2017 12:36 Thank you for the replies. Nobody here a gold believer? I am planning ahead for a balanced early retirement plan but want to have an aggressive piece invested in precious metal mining companies. There must be a good vehicle. Not that interested in just buying the gold miners index, but still open to it.
When I think of anything gold related I don't think of that investment as being aggressive. It is something that is more like ballast or bonds to your portfolio. Though gold has done well in the last number of years in the long term it has barely kept up with inflation, at least from my US perspective. I'm not sure what aggressive companies would be in Canada, but in the US they would be things like AAPL, GOOGL, AMZN, FB.

Gold is a hedge against the catastrophic failure of currencies, sort of like insurance that you hope you will never need.

My only venture into mining is with FCX, which I bought when it was seriously depressed. They do own some gold, but are much more in the copper business which is what the world still needs a lot of.

Dave
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