This Gold Mining Stock is an Easy Win
Investment Saturday rolls around again, and as it does – we see a dramatic move from the Fed to initiate QE3. I’ve long since held the position that the Fed will continue with their money printing policies of QE Infinity – as there really is no alternative.
In an economic system that punishes savings – how does one invest in equity markets? By picking sectors and asset classes which reflect the inherent nature of any market. Supply and demand are the core underlying truth of an economic system that is artificially distorted by paper money. Another way to invest prudently is to pick winners in emerging markets. However, this often requires that you go there and put boots on the ground to explore investment opportunities. I’ve written on the emerging markets which I like: the Philippines, Indonesia, and Myanmar. Combine this with an offshore corporate set up in BVI and you are good to go.
If you don’t want to journey abroad, you can invest in gold mining stocks – some of which have huge potential.
Take for example EGO – Eldorado gold. Disclosure: I own stock in EGO. I wouldn’t recommend a stock I don’t own personally. When I put a buy sign in on July 25th in my guide to gold, it was trading low – but when I read through the investor report I liked what I read: the company is interested in buying new mines and expanding in emerging markets such as Romania, Brazil, Canada, and others. I’m currently up 51.16% on that investment. Did you buy in yet? Now might be a good time.
Environmental Permit for the Certej Project in Romania was granted in full compliance with all Romanian legislation and European Union regulations. The permitting, which included a comprehensive public consultation process in Romania and with neighboring countries, culminated a six year permitting process.
“Eldorado has confidence in the integrity of the permit and the process through which it was granted. We are confident that we have followed due process and are in receipt of the necessary permits from the appropriate agencies. We look forward to advancing the Certej project in a timely fashion and providing the Romanian economy with much needed foreign investment,” said Paul Wright, CEO
Despite being up 25% for the month of August, the stock is still down 26% for the year. Still undervalued in my evaluation.
Commodities that have a limited amount of supply, and will see an increase in demand, will always increase in value in the long run, irregardless of short term corrections and distortions. Look at how the billionaire stores his wealth. If you are not American, go sign up for a gold backed debit card, or if you are American – get a bank account in Singapore or a corporate bank account in Hong Kong. Maybe even consider preparing for a worse case scenario.
The very best, bar none – nothing else even compares with this investment that you can make – is the ultimate insurance policy: A SECOND PASSPORT