Some Ways to Turn Gold Into an Investment
by Travis Johnson, Stock Gumshoe | July 24, 2009 1:35 pm
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I’ve been following Nova for several years and finally bot in last year – too bad I didn’t wait. Their attraction is 50% ownership of two very large mineral deposits – Donlin Creek(Au) and Galore Creek (Cu-Au). However, both are located in remote locations in AK and BC, meaning high operating costs. Donlin Creek is the furthest along, only need to get permits (a very big only). Nova’s main problem is lack of capital, although both jv partners are large miners (Barrick and Teck), so that helps. I figure at some point they’ll be bot out by their partners since they don’t bring anything to the table except their mineral rights. The bond looks very interesting. Realize that Nova may have very little income in 2015. Default risk is if permitting experiences endless delays with no foreseeable revenue. The state and natives are cooperative, but the feds could be a problem.
Thanks for the informative article, Travis. Your comments about gold as an investment were spot on. As an insurance policy against rampant inflation, a collapsing currency or political turmoil, there is none better than gold. However, moving forward in this economic environment, most investors should not expect to get rich by investing in the precious metals. That widow of opportunity has long since passed having presented itself several years ago between 1999 and 2002. I remember back in early 1980 as gold breached the $800.00 dollar per ounce barrier, the original gold bug Howard Ruff stood on his soapbox and proclaimed for all the world to hear, “We will see $1,000 dollar gold, we will see $1,500 dollar gold….indeed we see $2,000 dollar gold.” Obviously, that never came to pass. If fact a couple years later, Howard sheepishly wrote to his subscribers and warned that “Gold was sick and getting sicker”. Will history repeat itself??? No one knows for sure but there is a good chance that the price of gold will remain range bound for the next year or so before moving slowly downward.
Travis–No comment, but Currency Capitalist “Buy currencies with as little as $100.00 and get the same profits and protection as the big guys.” #2 “Use the simple “”floodgate Tactic “” that can turn a measly 1% currency move into an explosive 200% gain.” Thank You Stephen Rimar
Gold won’t rise as much as “they” want you to believe. The dollars in in contrarian with “their opinion” one of the strongest currencies in the world. The Euro wil collapse (I’m Dutch, we haven’t a United Euroland, like the States). Who can buy gold nowadys? The unemployd people in the row for a food program? And the big consumers in India won’t buy it at all with too high prices. Gold will soar imho, stay away and wait after the steady drop. My old mother told me not to do what anybody else already does…