I've been having a look around investment funds recently to see whats on offer. What I'd really like to find is an Australian investment fund that specializes in junior gold stocks, but I don't think one exists. Demand for such a fund might be small right now, but for someone like me who invests in gold and sees a lot of upside in the sector, a managed fund would be an ideal way to go for the smaller stocks. Junior gold stocks are high risk - chances are that they either go boom or bust, so it's the kind of sector that should really be invested via broad diversification that a fund could provide. The way I see it an individual investor could put $1000 into a dozen junior gold stocks and hope one hits the jackpot, but putting $12000 into a junior gold fund which invests across 100 stocks is more likely to spread the risk and get a semi-reliable performance across the sector. Call me crazy if you like, but if a fund like this doesn't exist, I'd love to start one! Does anyone know if a fund like this exists?
PS - I am aware of the VanEck Vectors Junior Gold Miners ETF (GDXJ) on the US exchange, I guess I am after an Australian version?
Pretty sure nothing exists that would fit purely the penny stock criteria. Put me down for a couple of grand mate. Who doesn't like a group buy?
How about the VanEck Vectors Australian Emerging Resources ETF (MVE)? See http://www.vaneck.com.au/funds/MVE/Snapshot/
Good tip. Gold makes up 28% of that ETF but since it's a play by the rules index tracker and is fully transparent it would be easy enough to just track and replicate the gold component. You wouldn't be getting the really junior players but it's a good place to start looking.
Perhaps. I haven't been following your thread as closely as I was planning to, but from what I've seen it does occur to me that your brokerage costs are probably going to hurt you in the long run and you might be better off with something like this.
Had a quick look at VanEck and i was not aware that they existed. I do not like energy stocks yet, and base metals are a whole different beast to the precious metals. In a recession base should slump whereas gold and silver should be strong. In a currency crisis, gold and silver should lead any other investment.. If there was a gold silver fund that say funded mines in return for future supply of actual metals, i would be in like flyyn. Good to see you are testing this idea out Bugged thanks.
The brokerage is going to be a minor problem because we are not actually trading . If we were chasing runs and buying and selling then yes it would kill the whole plan , but the strategy is to get a basket and sit till you sell. If i have to put in an extra $500 to cover my brokerage then thats fine.
I bought a good chunk of GDXJ at $18 http://forums.silverstackers.com/message-849025.html#p849025 It bottomed out at $17 a couple months after this post. Up to $37 on Friday
I would be up for some as well if they existed Been looking around and can't find much in Australia that I like so just keep putting more into ASX:NCM Some pennies look okay but who really knows which ones could go bust unless you are spending countless hours doing research
Research takes a bit of time hey? I will give you a tip from a man wiser than myself. Its all priced in already simply look for price action and volume, someone is always in front , just follow them. When i was day trading full time i looked at price and volume, thats it. i initially used two indicators , a 200 over a 20 sma and in the end i didnt even use them to trade.
