Voltalia Ord Shs VLTAF

valuing Volta in dollars

[ALLEN4]

Here is a concept that I have been wrestling with for some time. This Sprott article about gold generally sets it out nicely in the following paragraph.

"For those that don’t accept savings dilution as the ordinary course of business, how do investors protect themselves from this loss of purchasing power? We feel a conservative approach would be to ignore nominal prices entirely and focus on building real wealth with a strong weighting towards tangible investments. As currencies are debased it is ‘relative values’ that investors should use to make investment decisions, since nominal prices can be distorted. In the case of gold, it is pointless to debate its value in US dollars. There is no longer any tie between the two and it’s clearly the value of paper money that should now be on trial, not gold. In future editions of Markets at a Glance we will continue to explore the investment themes and businesses that we feel that meet this strong relative valuation criteria."

Simply put, on any given day you can translate your Volta holdings into dollars (albeit Canadian dollars) as a measure of the success of your investment. However, if you believe that fiat currencies are being devalued worldwide this daily measure of success is perhaps foolish. I am not ready to take the leap and ignore the daily translation of my Volta investment into dollars, but perhaps one day I will. Here is the entire Sprott article.

https://www.sprott.com/Docs/MarketsataGlance/01_10%20Beware%20Counterfeiters.pdf