Global Mining Investing $69.95, 2 Volume e-Book Set. Buy here.
Author, Andrew Sheldon

Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.

While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.

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Wednesday, December 11, 2013

The Dow rally set to die - where to place your money - I say gold equities

We have long argued that the reason why there is no inflation evident in the Western world is because its being concealed by 'asset inflation'. We are close to a fall in asset prices judging by the Dow Jones Index. Just looking for the Dow to break that 15800 pt level convincingly. I like that the Dow failed to achieve a new high recently. So we have 2 positives:
(i) Gold is the only cheap asset class, unless you can find a dodgy third world economy to invest with 'good fundamentals,
(ii) Asset prices look like falling, so you can expect to see rising 'cost-of-living' inflation.

The appeal of gold or in fact any precious metal equity is that they represent 'cheap asset' when every other asset class is dodgy; that is overpriced at a time when inflationary pressures are building. The inflationary pressures are arising because of the collapse of over-priced assets themselves. Most people think asset prices are just the 'things we consume', but investments are 'products'. When we preferentially spend on securities, and consequently bid up the price of securities, we create one type of inflation, even if there is no blow-out in cost of living inflation, i.e. the price of fuel, vegetables and computers. If the only spending being done is on investments, that's because we are creating non-productive assets, or trading in secondary assets, and not creating new assets to serve as a foundation for the creation of new money. This is why, if money is divested from securities, either new securities need to be created, or debt needs to be liquidated. This derivative trading is netted off, but it leave a very real scar on the 'physical economy' where most spenders live, and this is where we are destined to see the inflation.

You need not buy gold though. In fact whilst gold is trading at $1260/oz, the price of gold equities is very cheap. I have long suggested a company like Gryphon Minerals (GRY.ASX) because it has $62mil in cash and investments useful for financing a gold mine development, as well as 4-5Mil oz of gold to underpin that investment. So we have an asset of $6-7 billion in-situ, that can be mined for say an Net Present Value of $0.5-1 billion, depending on your outlook for gold prices, and this company is trading at an enterprise value of zero as we speak (14c). It just doesn't seem fair. Where is the downside? None is imminent. That's not to say there are not future risks, say of political risk. I've not seen a nationalisation of assets for years now; the closest being Iran and Venezuela. But you might be scared of a gold project in Africa. I'm rather satisfied instead by the low mining costs and the lack of impact of Western largesse on the traditional values of Africans who could probably care less that Western financial markets are going through upheaval. Catch our stock picks on our mining 'SPEC' page, or you can find us on Facebook.

Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
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Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
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The Philippines property market remains one of the strongest in Asia thanks to rising incomes, rising population and rapid rates of urbanisation. The administrative reforms of the Arroyo government have given way to improved administration under Aquino. ASEAN countries can be expected to achieve even greater price gains than Western markets, demonstrating that this super cycle is far from over.

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Investment Strategy

If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.

'Buying NZ Property – Download the free sample readings!

The NZ property market is shaping up as one of the most attractive property investment markets for the next few years. High yielding property and the collapse of the NZD make NZ the perfect counter-cyclical investment if you buy right! In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

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