the dollar vigilante blog
Feedback Friday - January 11, 2013
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Welcome to another edition of Feedback Friday. This is Gary Gibson stepping in for Managing Editor Redmond Weissenberger because -- surprise! -- a socialist government has failed to keep the lights on. Apparently the Internet went down in Toronto this week. Redmond lives there and while Internet has been mostly restored throughout the city, service is still questionable in some areas, inlcluding Redmond's neighborhood.
This week we've been watching the politicians put on a show while their media prostitutes play up the "debate" about gun control. Ha! As if we don't all see where this is going! Surprisingly we haven't been getting much discussion about that in the TDV inbox...but I'm sure we will be soon...
In the meantime, here is today's brief Feedback Friday with a couple of answers from our investment editors. We think you'll find it useful. Enjoy!
I was listening to Mr. Berwick and Mr. Maru discuss on video what's covered in the GYGOOD report.
Mr. Maru made a comment (3:52 on the video) that folks should keep some of their preicous metals (PM) in their country of residence, either at home or in a safety deposit box.
It is my understanding that safety deposit boxes are risky being that banks are vulnerable and not in a person's control. For instance, in the event of bank holiday (where you couldn't get to your box) or bank closure (permanently) or authorities going through boxes on premise they are looking for something and items from boxes disappear (items that were never itemized) - how would you get your PM?
So I was very surprised to hear that safety deposit box in the banking system was recommended in this most serious of subjects - How to GYGOOD.
Please comment, as I wanted to purchase the GYGOOD report, but that comment stopped me.
Vin Maru's Response:
Well, it’s best to have a diversified strategy depending on how much gold one owns.
In-country storage could include one's home (hidden or safety deposit boxes), specialty storage facilities for bullion & high net worth items, or keeping them in a safety box at banks.
Storage abroad could include bullion dealers that offer storage (but this could be open to reporting), separate non-banking storage facilities and vaults or safety box locations.
There is no one strategy that fits all. Each person has to make choices best for them and their comfort level.
There are no guarantees that confiscation will occur at home or abroad. The reach of government to all assets worldwide is the biggest threat if you are found in breach of any of their laws. If you are worried about confiscation, the best hope/chance anyone has is to be diversified in precious metals holdings.
Risk of storing everything aboard is that it may not be easily accessible in financial emergencies.
Gary's Two Cents: If you want to hold some metal in the US and keep it simple, the best metal to be holding has been discussed thoroughly by me in TDV's Homegrown newsletter. If you want to use gold to trade your way to serious wealth, Vin can help you out with that in his TDV Golden Trader newsletter.
Which index best represents the perfomance of the junior miners in the premium subscriber's portfolio (by Ed Bugos)?
Would it be the Junior Gold Bugs Index (JHUI)?
Thanks in advance,
Ed Bugos’ Response:
My overall portfolio is quite broad as it includes bullion and other assets and ETFs.
The HUI (or the GDX ETF) is a good yardstick for the gold and silver "producers", of which I only recommend a few [Editor's note: You can see exactly which stocks Ed recommends when you sign up for the Premium version of TDV's Weekly Dispatch...click here to find out more]. The junior gold stock portfolio, where I focus on individual small-cap non producer companies, can be compared to the junior gold stock and explorer ETFs: TSX:GDXJ and TSX:GLDX, respectively; or to the Canadian Venture Exchange’s index (CDNX).
Sorry for the rough year...but that just sets us up for the kind of winnings that will make our descendants truly thankful towards us one day.