having said, we sometimes hear stories of how the an immigrant, who left his hometown with only gold bar in his backpack; and with that backing and with his hard work is able to strike it rich. but that is donkey years ago stories.
how true is it in the current day context i do not know.
When it comes to playing commodities or precious metals, the average retail investor will surely lose in the long run. The funds have the best professionals tracking and collecting data 24/7. You think you have accurate info, but you don’t. It’s like an amateur boxer stepping into the ring with Mike Tyson. Guess who will win?
I stay away from commodity stocks too, esp small or mid caps , as one has to worry about the mgt quality as well as commodity prices. Hence , I don’t know why retail investors chase mining stocks when they know nothing about mining ? IMHO, they should stick to what they know , esp those with limited finances. Nobody can be an expert in every field.
Hi, Relaxing
What you said is very correct but for an AVERAGE investor who usually does not think deeper and out-of-the-box. He would be taking high risk for venturing into something that he is unfamiliar with.
What I am sharing here is for those who have an interest to capitalize on opportunities with high odds of winning. This entails venturing into unfamiliar territory and LEARNING & UNDERSTANDING a possible moneymaking venture in order to have a high winning chance. As I have already said, GOLD INVESTMENT IS NOT FOR EVERYONE. The gold sector appears to be heading into a crisis (should gold price fall below production cost forcing many mines to close) and every crisis brings opportunity but only to THOSE WHO ARE PREPARED TO LEARN, UNDERSTAND, THINK AND ACT WISELY so as to be able to capitalize on the opportunity profitably.
I shared your view with regards to gold investment. I am vested in CNMC. The thing that i like about this company is that when the government raised fund, it done its best to protect everyone's interest without diluting the interest of minority shareholder at cheap valuation.
Most recent fund raised come with exercise price of more than $0.40. The investors are related to insider which prove that insider too are positive on the company.
Recent disclosure can see that the company is ramping up production and has record high ounces of gold produced in September with technical support from china company.
Only disadvantage with this counter is lack of liquidity... but then once the gold price rebound, the share price will sky rocket.... together with the ramp up in production.
Hi, Erelation,
I wish you well and have a profitable venture. I have not done any study on individual gold stocks although their returns can be considerably more than the gold ETFs or unit trusts. With the severe sell down in gold and gold mining shares, there should be less difficulty finding very good stocks with the potential to give “multi-bagger profits” when the market eventually recovers. Unfortunately, good mining stocks are all listed in foreign countries and it is rather tedious and time consuming to do research on them.
Like foreign mining shares, CNMC, listed in SGX, has also taken a severe beating falling from a high of 53 cts to the current price of 20 cts. I shall take a look at this one.
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