HI, Just a question is anyone here from Oz invested in any of Eric sprotts managed accounts? I understand that the Precious metal mining sector is undervalued and i want to get some exposure to this. I figured this might be a good way to do this rather than try to become an expert stock picker myself. How do Australians go about investing into a managed account in the USA?
Be mindful that the rising U.S. dollar is a function of capital fleeing Europe and Japan as their respective currencies and banking systems crumble. There is no other investment in the world that can absorb that kind of capital except U.S. dollars and U.S. bonds. There will come a time when the U.S. dollar will be in focus in a few years time and the rush of capital out of the U.S dollar and bonds will push stock markets and tangibles..coal, oil, gold, silver wheat, etc....through the roof. If you invest now in U.S. dollars you may get a small gain initially but long term you will lose because when the U.S. dollar finally breaks from the pressure, the Aussie dollar will skyrocket. Don't forget that back in the 70's the exchange rate hit $1.45 against the U.S. under similar conditions. We are going to have terrible stagflation, stagnant economy and high inflation, once this deflationary collapse is completed. Any gain in gold will be lost in the currency exchange. The real gains in gold will not be until the U.S. dollar is on the slide so it would be far better, in my opinion, to be invested in good gold mining companies in Australia as you will get the multiplication factor of the mining company and the benefit of an appreciating currency which will attract even more capital from overseas as it is far more attractive to buy stocks in a country with an appreciating currency as you will make money from the stock and the exchange. It does not matter that you are not an expert stock picker as very few people are. You will never pick the bottom or the top. The possible multipliers in some of the Australian gold mining companies is mind boggling. If gold falls back to the $1150 mark then it will be a once in a lifetime opportunity. Companies like Newcrest will not go broke tomorrow and are virtually debt free. There are others as well which are very attractive.
You could also subscribe to a service like diggers and drillers, check it out. I was a member in the past, I think there was months free trial for memory
Thats for the feedback. Looks like i will have to take the hard road and learn this game myself. Any good advice on a starting point? I know of Diggers & drillers, any other good subscriptions or managers who are experts in the precious metals mining sector trading on the ASX that i can learn from. I have never traded shares before and I am also wondering how the stock markets will go throught this economic storm when it finally comes.
You timed that one well then... http://finance.ninemsn.com.au/newsb...r-big-reason-newcrest-shares-are-being-dumped Well, that and the fact that Newcrest has the highest cost of production per oz of ALL gold producers in the World at AUD$1300/oz... Ooooops! What's spot right now?(!!!) AUD$1330... Do what Sprott did - buy into a low-cost W African concern which can produce at $500-600/oz
Very true ...NCM is a very high cost producer which is the reason I mentioned 1150 as the possible gold low and maybe down to 1050. NCM is going to get creamed which is the reason to standby and wait....I doubt gold will remain at these levels for an extended time so the multiplier for NCM will be high. I too am waiting to pick these up in significant quantities....it is getting close however. As for Sprott, within 5 to 6 years the Aussie dollar will well and truly surpass the u.s. dollar an dither rising Aussie will attract investment in our stock. Just like gold is in its mid cycle pause before new highs, so it is the turn of the Aussie. Cheers
