Aurelia metals: reach the peak, page-133

Its pretty valid to imply gold is niche imho.

I was recently reading a pretty common stock picking wisdom; good management, proven profitability, moats and competitive advantage...which then went on to say they would never touch anything resource related as a serious investment because they are a "price taker." I've seen this many times based upon a value and FA

The POG, the POO, these resource producers have literally no control, no matter how well run, over the price of their generic commodity product so the wisdom goes. However the moat if you will is huge. No effective disruptive alternatives tech or otherwise, scarcity, stable or rising global demand and dwindling supply. Plus its bloody hard to find the stuff and efficiently remove it.

This is a great backstop against doing a Kodak or for that matter an A2M or APT or any other company whose IP is essentially good marketing and first mover advantage. That the POG is unpredictable and may well go lower is because the price is not market driven in the Adam Smith sense and is probably disconnected from the reality of the physical asset. Of course I dunno, I'm making it up. Sounds clever to me but.

In mining I suspect good management has as big an effect on your returns as the asset and the price and this is of comfort when you have a team of the calibre AMI seems to. So in fact we kinda tick all of the boxes.