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Sokoman Minerals Corp. V.SIC

Alternate Symbol(s):  SICNF

Sokoman Minerals Corp. is a discovery-oriented company with projects in Newfoundland & Labrador, Canada. The company's primary focus is its portfolio of gold projects along the Central Newfoundland Gold Belt, and the district scale Fleur de Lys project in northwestern Newfoundland. The company also recently entered into a Strategic Alliance with Benton Resources Inc. through three, large-scale joint-venture properties in Newfoundland


TSXV:SIC - Post by User

Comment by NLMooseon Jun 17, 2021 8:47am
131 Views
Post# 33400933

RE:RE:$$ ;

RE:RE:$$ ;

I think the gold price decline will be shortlived as treasuries and bonds are not a reliable investment in the long run and here's why.

Unlike your savings, chequing, mortgage, or high interest bank accounts which use compound interest, bonds and treasuries use simple interest which will harm you during times of hyperinflation.

In addition, unlike your typical bank account or mortgage, bond yields don't change even when market rates go up.

Most people don't realize that if market rates go up, the value of your bond actually gets lower and lower, meaning your bond will be sold at a discount.

Only way you can truly make money off bonds and treasures is the market rate to be lower than your coupon rate, which results in your bond being traded at a premium.

Let's suppose you buy a 20 year $100,000 bond with a coupon rate of 5% per year.

That will result in a bond yield of $5,000 per year.

If the market rate increases to 6%, what will happen to the bond yield?

Because bond yields don't change if the market rate goes up or down, your annual bond yield remains unchanged at $5,000 per year as its determined based on coupon rate, not market rate.

Moreover, the value of that $100,000 bond will also go down.

Conversely, if the market rate went down to 4%, the bond yield will still be $5,000 per year, but the value of that bond goes up as coupon rates don't change.

That's why you're better off buying gold or getting a bank account with compound interest as opposed to bonds and treasuries.
 

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