Tuesday, 27 March 2012

Selecting explorers and junior miners

Searching for excellence

Precious metal explorers as investment vehicles have a long standing track record of extreme volatility. As Rick Rule of Sprot Asset Mgt. USA uses to formulate it: “We have known both the thrill of victory and the agony of defeat”.
It is obvious that the success of precious metal explorers goes together with both the exploration talent of a small team of geologists and with their broader management skills. Add just a grain of luck in picking among the promising geological anonalies the successful drilling locations. To end this introduction with another quote of Rick Rule: “Profitable miners ultimately will see their share price reflect increased cash flows from mining operations, but you can’t count on a gold bull market to bail you out of a dumb decision on an explorer investment.”

Saturday, 24 March 2012

Er roert wat bij de vastgoedcertificaten

BRECS index stabiliseert
Na een eerder zwakke periode eind 2011 en begin 2012, is de dalende tendens onderbroken. De BRECS returnindex heeft begin maart opnieuw postgevat boven 68000.

BRECS index  (blauw - linkerschaal) en couponrendement (rood - rechterschaal)
Het gewogen gemiddelde couponrendement bedraagt momenteel 6.31%.

Monday, 12 March 2012

Long-term performance of large-cap precious metal miners

You are reading an article dated March 2012. Both gold bullion and miners are much lower now (Jul 2017). Moreover the HUI composition changed, but miner performance disparity continued unabated...

There are a couple of benchmark indices around composed of major precious metal miners. The more common one is the AMEX Unhedged Gold Miners index with ticker symbol HUI. The index is around since 1996 and it counts 16 components. There have been several changes last few years, but I will use the present composition in this posting. Along with the company name and symbol goes the index weighting.
Additionally, I've calculated what a $1 investment back in summer 2002 would result in now (closing prices of March 9, 2012). Over almost ten years, there is a dramatic difference in gain, resulting from an investment in these miners.