Sorry if a thread has been started on this already.... but figured this might interest a lot of you... [youtube]http://www.youtube.com/watch?v=BLtA-rv2Qug[/youtube]
I think it's a great idea. My fear would be the company going bust and defaulting on my cash. I don't know enough about 1. The mining game, and 2. The mining game IN BOLIVIA, to know if my fears are reasonable or not. And yes, I read their prospectus. Would love to see some Aussie pm miners starting to do this. As you suggest though, our pm 'dividends' would be taxed.
Yep ... Great Idea ... I think you may have a customer here. Similar sort of things are being done between members of this forum already . Never thought of calling them bonds. CK Bonds ... I like the sound of that. The only difference between those scenarios and the Royal Silver deal is that the money put forward (like in your example $5000US) is returned in Metal, and not in Fiat. I agree with you Mr. Morgan that the silver and gold companies should be paying their dividends in their product. After all that is why the people invest in them. Brian and Royal Silver are to be congratulated on bringing such a beast to market. Well done.
nationalisation of the silver mines and bolivian marching powder contests are potential flashpoints the usd is a widely used currency in south america could be a sticky issue in a year or two
though the fine detail of that must be known beforehand after all, if metal prices rocket, then your investment return will not be made on crystallisation of the bond in metal rather, the sum total of ounces versus buying 5h in metl now, including factoring the postage and handling
its not something u should do if 5k represents a large chunk of your stash... but for those with 10's of thousands plus in this game, its a fair investment to make that may turn out to be a ripper investment... I guess I trust the guy after having established quite a relationship with him after the andean cat issues etc... he's grown on me... hes just one hellava passionate guy about what he does... passion tends to bred success so I'm willing to give him $5k to see what he can do - infact, I might chip in for another certificate yet...
So what if you got 12 guys together to buy one Cert... Everyone puts in $420.00 and everyone gets two coins and their money back after 2 years?
CK, the money is returned in fiat after the earlier of 2 years or 30 days after a request is made. They do allow you to purchase up to $5000 of coins on credit, but the coins are to be paid for upon delivery. One risk that hasn't been mentioned is the devaluation aspect of the $5000 USD. Odds are pretty high that the USD will decline a lot within the next 2 years. That decline could more than offset the silver dividends. So you have the great concept of receiving a beautiful coin each month as a dividend, but you are investing in US fiat within Bolivia.
Actually, im hedged in AUD - not USD... I expect the USD to decline as well... I am guaranteed to get $4500 AUD back at the end of this regardless of the exchange rate or how much the USD devalues (or surprisingly increases in value)
My statements were not directed at you John. I was pointing out the currency risk involved in this investment. You might tell your fellow Aussies how you are hedged.
Yeah .. Got that ... What I was saying is that the deals that I've been privvy to have involved returns in metal based on spot at the start of the contract. Whereas the Royal Silver deal is denominated in YUCKY USD. John has some great ideas for how to hedge this into a real currency to avoid the Obamination that is the greenback. Check em out. Ck.
you can even denominate the bond in silver rather than USD... so you can get in two years time the cash that 4500 worth of silver would buy you now... if silver doubles, you'd get AUD$9000 back when the bond matured.
Im actually going to do a basic step-through vid on this in a few days to help people not just understand the notion of hedging but the step-by-step on how to do it.
Are the rounds sent 1 month after a membership is bought or 1 month after all memberships have been sold?
