Quote:
Originally Posted by ultracapper
lambo, have you ever looked at the ticker CMCL? I've been in and out of it a couple times over the past 36 months. Kind of stingy on the dividend, but Blackrock is all over it. They dig in Zimbabwe. Mineral rich. Politically, always a caveat.
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i have owned this in the past.. the only thing i would worry about on this one now, is the swap lines...i always worry about a country that might decide to nationalize the mining business inside their borders.
as strong a company as Barrick Gold is, i would stay away from it for that reason.. another way you could own gold is by owning the Central Fund of Canada. CEF. the fund at times sells above net asset value... i would wait until it sells below.
if you are good at it, you can buy Kugerrands slightly below spot. the coin contains more copper and other alloys than an American coin has.. i have never seen any United States bullion coin sell without a premium to them. a Canadian Maple leaf is a great mintage that actually contains more gold content than American. the Canadian is 24 karat, while American is below that. even against the Maple Leaf, i would still highly advise you to own American.. what i have learned from back in the late 1970's, when you are in a very fast market, and you are a seller, you want to be in the product that is closest to 100% precious metal.. for example, you want to own a united states silver eagle over a 1965 Kennedy half dollar 40% silver coin, or anything that is silver sterling. it is a lot easier for the dealer to find a home for something that is 100% metal, than something that has a higher percentage of alloys in them.
there is a company now that will pay you interest on your precious metals. they store it in a vault in Delaware and then they lease it out to mainly manufactures of jewelry. they pay about 2% per year in interest in the metal that you store with them. they don't charge you a storage fee either. but Switzerland vaults still offer you the highest degree of insurance that you can possibly have, but they do charge you for that.
while i understand the precious metals market fairly well, i really have little knowledge of the crypto currency world. the only things i know about them is that there is supposed to be a limited amount of the product and that is the reason why it can trade for much more than it sells for now. there is no way any government or financial institution can put a lean, attach or confiscate it.
there is also no financial institution that i know of that will take it as collateral for a loan either. the bid and ask spreads are very high on these things right now. Crypto's are not backed by any government or a precious metal's history. it is simply something stored in the cyber world..
