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What's the most cost efficient way to buy Junior miners?


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As per title.I'm looking at the PM mining sector and pondering dipping my toe in at some point in the future.

 

I'm not really interested in buying ETF's or managed funds as I hold long term and don't want the counter party risk.

 

Some of the bigger brokers like Barclays give you access to many markets but hold the stock for you and act as nominees.This latter point is a problem for me,as,the last time I checked,if Barclays go pop,then my shares,held by their nominees,would be classed as their assets.

 

In the old days,you could hold certificated stocks all over the place and I still have some small holdings that sprang from the loins of Gencor,BHP,De Beers etc.

 

Do any brokers still offer this service?

 

How do you old hands trade your stocks?

 

Thanks in advance if you can help or enlighten me if I'm being a philistine.

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As per title.I'm looking at the PM mining sector and pondering dipping my toe in at some point in the future.

 

I'm not really interested in buying ETF's or managed funds as I hold long term and don't want the counter party risk.

 

Some of the bigger brokers like Barclays give you access to many markets but hold the stock for you and act as nominees.This latter point is a problem for me,as,the last time I checked,if Barclays go pop,then my shares,held by their nominees,would be classed as their assets.

 

In the old days,you could hold certificated stocks all over the place and I still have some small holdings that sprang from the loins of Gencor,BHP,De Beers etc.

 

Do any brokers still offer this service?

 

How do you old hands trade your stocks?

 

Thanks in advance if you can help or enlighten me if I'm being a philistine.

 

 

There are differing risks no matter what method you want to gain exposure to PMs.

 

If you want to avoid counter-party risk then physical is the only real option.

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Point taken,I guess it's just as we age we aren't necessarily as adaptive to changes as we once were.

 

The weird thing at the minute and it's something your HUI:GOLD chart highlights beautifully is that the price of the physical has become detached from the price of the stocks.There's value appearing in the stocks as I see it,but I don't see it in the physical yet.

 

If I saw value in the physical,I'd buy it.

 

My aim is just to limit the risks between me and my ownership when it comes to my pension pot.That's all.

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  • 1 month later...

They maybe cheap, but you must have patience as it could bump along the bottom for a while. I am looking for 2yr new highs before buying.

Jim Rogers said, stocks can go to zero, but the commodity cannot, and that has been invaluable advice.

 

 

Thus,

 

NEM must clear $70

 

GFI to clear $15

 

AU:NCM to clear $35

 

These "level monitors" are valid for the next three months. Judging by the distance they must go to get past these levels, there is a lot of overhanging stock to clear to get there (and thus time involved). And if these mines are losing money, they will need to issue more stock just to stay alive.

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