Vanguard is an American investment management company with their headquarters in Pennsylvania. Their total assets amount to around one trillion US dollars, mostly made up of mutual funds. One of their institutions is Vanguard Precious Metals and Mining Fund.
The fund invests a minimum of 80% of its assets in the stocks of local and foreign companies that are involved in the mining, exploring, development and marketing of precious metals and minerals. Gold and silver are seen as steadfast forms of investment even in times of economic downfall and fluctuating stock markets. The Vanguard Precious Metal fund helps individuals and companies in investing in gold, silver, and other precious metals.
The main precious metals involved are gold, silver, platinum, and diamonds, although other precious stones are also of interest to the fund. Precious metals that are invested in are those metals that are used only for non-industrial and noncommercial purposes.
The remaining percentage of assets are invested in those companies that participate in activities related to the more common metals such as copper, nickel or zinc, or other metals that are used mostly for industrial and commercial purposes.
The fund also occasionally invests 20% of its assets in silver, gold or other precious metal bullion and coins. Bullion refers to precious metal in a bulk form, such as coins or bars, and is traded on commodity markets. Bullion is recognized by its mass and purity of the metal, and can be bought depending on the spot price of that metal. A bullion coin is a coin made from precious metal and kept aside as an investment, rather than being used in daily monetary exchange.
The Vanguard fund takes on foreign exchange contracts if it fears an undesirable change in exchange rates and therefore wants to protect its investments. However, this has its risks too, because if the foreign markets become unfavorable, then these contracts will still hold, and the funds holdings will decrease. It is for this reason that not more than 20% of the Vanguard fund is invested in foreign contracts. In any investment company, past performance is not an example of future performances. There will always be changes in the value of precious metals, and this in turn will affect the investment returns. This means that investors shares can be worth more or less than their original cost.
....very serious people coming on board the good ship Cudeco and yet another box ticked as C123 would state (lol)
Cheers to holders
Dossa
CDU Price at posting:
$3.03 Sentiment: Buy Disclosure: Held
