Hi Timber1956 and all,
“Which is the wisest? Passive investments (such as gold), or active investments (such as shares).”
“That you are a good deal more cautious than I is well established and accepted.”
I tend to see my physical Gold holdings as insurance rather than investments and I consider myself fortunate that my other business interests allow me this luxury.
As for me being cautious I think people like Skol would claim I have thrown all caution to the wind with my Brazilian explorer play! I understand the risks involved with the exploration sector; however, sometimes I feel the risk reward ratio is worth a punt on the odd long-shot.
If we think of one of my
passive Gold plays such as BBX (at least going in the right direction) and Skols
active investment in CBA from $84.92 to today’s price, then I have no problem deciding where the wisdom may lie.
However, I accept this is just one example and some may see it as cherry picking, they can if they wish, it’s certainly a situation I follow closely having my own money firmly where my mouth is, as does Skol.
To mention one or two things that may have some bearing on the Gold price in the coming months.
On my return to the UK over the weekend I caught up with what is happening in the mining business. It would appear that the South African Gold mining industry is now a shadow of its former self. Their mines are some of the deepest and oldest in the industry and are no longer as profitable as they once where and now there is even more production cost pressure being applied by the unions demands for living wages. My contacts in that country are expressing concerns about white farmers being dispossessed of their land and other problems as the government pushes back against the historical apartheid system legacy.
When I was considering migrating back in 1980 I did consider South Africa, Canada as well as Australia. I thought Canada too cold and I thought the South African political system may end in tears (didn’t think it would take 40 years though) so decided on Queensland Australia. At least for the moment despite our hapless Politian’s it would appear I made the right decision.
I see Hapless Malcomb may need to watch his political back over the next couple of weeks I’m not sure his back-down strategy will work for him.
https://www.news.com.au/national/politics/peter-dutton-looms-malcolm-turnbull-support-drops-poll/news-story/b6de9c6a9ab9af3e76a63793382ed258
Minerals Council says 75% of SA’s gold mines unprofitable
https://www.businesslive.co.za/bd/companies/mining/2018-07-11-minerals-council-says-75-of-sas-gold-mines-unprofitable/
Mineworkers (NUM), Solidarity and UASA.
"All four unions have rejected these offers, which ranged from 6% - 7.2% for Category 4 underground employees, and 3.5% and 4.5% for miners and artisans, and officials," the companies said in a statement.
https://www.fin24.com/Companies/Mining/unions-reject-gold-companies-latest-wage-offer-20180815
Of course, political upheaval is nothing new in our world it just seems at the moment it’s sprouting up in spades from Argentina, Iran, Italy, Turkey, Syria, South Africa all the way to Venezuela. Add in an international trade war, a currency race to the bottom and any one of several potential Black Swan events and people wonder why a chap would see Gold as an insurance policy!
I trust things are going well in Majorca and the heat is not so unbearable, I notice my recent three trips have been alphabetical Majorca, Madeira and Malta.
By the way I make no apologies whatsoever for being a hard-working old-fashioned capitalist that believes making money is an honourable pastime that allows me to live a pleasant life and also assist many others less fortunate than myself.
Cheers and very best regards: Andy
