RE:RE:RE:RE:RE:RE:Artemis Gold advance final permit....good news here too! AlwaysLong683 wrote: Kirkland Lake Gold produced gold both at Macassa and Fosterville, not silver, copper, lead, zinc. other.
If you want gold, you can invest in exploration-stage companies that are about as pure a gold play as you're going to get outside of investing in pure bullion itself. Same with siliver, copper, lithium, etc. etc. Pick your metals and minerals yourself.
You can get a one year GIC in Canada paying over 5% right now and high interest savings accounts paying not much less than that.
Yes, taxes take a bite out of interest earned if not in a tax-sheltered account like an RRSP, RRIF, TFSA, etc., but it's a nice place to park money earning at least something while waiting for a better entry point. You also pay taxes on any capital gains you crystalize on the sale of gold stocks (albeit at a lower rate), so it's not like cashing in on the sale of gold stocks at a profit is tax-free either, and both are subject to the same inflation effects when calculating real return.
I said I am not in gold stocks (yet), but I do have the majority of my portfolio in blue-chip dividend stocks and the rest in a high interest savings account available at any time to strike as I don't want to lock in my money for 1 whole year with a GIC. I'd rather make a small chunk of change on the sidelines than carry dead money in gold stocks for months (or see gold stocks fall in price), at least that's my personal strategy. To each his own. Gold explorers are spending money drilling, assaying, and building infrastructure at a time of stubborn inflation, rising interest rates, and an inverted yield curve. Sure, the price of gold and these stocks could spike in the next few months, but I doubt it, so why would I want to put my money in now....?
It costs money to drill. It costs money to assay. It costs money to build infrastructure. Further, if we're talking IAU,, I suspect the FED may increase rates two or three more times this year (likely 25 bps each), so I don't think interest rates have peaked, which will make T-Bills even more attractive vs. stocks that pay no dividends, plus I don't think inflation will receed until H2 2023, so I prefer to wait.
We are generally in agreement. The portion in my portfolio that is risk free is tied up in a 5 year GIC ladder as well as high interest savings accounts. There is currently nothing that appeals to me in the equity markets. I think interest rates will remain high for a while and don't see a fed pivot happening any time soon.
The one exception I am making is IAU. I feel the risk reward scenario is such that the risk of a market downturn is overshadowed by the news flow that will be forthcoming from the company.. This is company specific and I am not interested in buying any other gold stocks. I particiapated in the rise of Kirkland Lake Gold from $5 on upward and feel IAU is in a similar situation.. These opportunities happen far too few in one's life to be sitting on the sidelines. For me the two greatest risks are not being invested in IAU and a major buying out IAU too early.