If you were being gifted a $100K portdolio of resource stocks, would you prefer the portfolio of precious metals (gold/silver/platinum) miners or a portfolio of non-PM commodities (copper, iron, bauxite, crude oil, natural gas, rare earths) primary producers? -RCS
Particularly at the moment. It's just not looking good fit a lot of resource companies at the moment and end use in Chinese manufacturing isn't looking good to pick things up. You would want to do a lot of research into the right companies and the right niche resources. If you've been following this sub forum you would know I really really like peninsula energy, the start up uranium miner, but even I would have to admit that's a speculative buy, I think a good bet, but not for a big portion of a SMSF or the like. With the way the AUD is going and cheap oil it's a little sad that gold miners aren't doing better. I wasn't a "global crash is coming" guy but there's concerns on about six fronts that would lead me to weigh on the PM side since I don't think demand for iron or LNG and the like is going to pick up in a big way any time soon. I suppose the point is that you should invest where you think there's real value in a company along with a company that can survive the climate. Don't just invest it all in a few companies scatter shot to get exposure to the sector. If you don't see a convincing narrative for why you should invest in a company and why you should particularly invest in that company now, rather than waiting to see how things shake out, then hold on to your money and wait for the right moment to strike.
If either/or I would go for the industrial commodity producers. I would be happier if the p/f was in diversified miners like BHP, RIO. I'm holding some BHP though, and would not be unhappy if it invested in a few gold mines. I know its not the question but I would prefer by a mile a p/f of dividend paying industrials/telecoms-I.T/healthcare/financials/realestate/retailers to either of the above options.
