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Im not a real expert but here are my thoughts...
Posted on: September 18, 2023 at 14:52:40 CT
MUBIGDOG1 MU
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You probably already know this but investing is all about valuation. And that usually involves some form of cash-flow model:
Bullion: Its probably expensive to custody at a broker. Plus, there isnt any cash flows so the valuation is based on how much the next person is willing to buy it from you when you want to sell. The cost to store it makes it a challenge.
Gold Stocks: This price is generally based on estimates of how much gold a miner may anticipate that is in the ground. Probably trades somewhat in-line with gold but there is at least cash flows. The gold stocks may also own futures contracts which may experience some issues as well.
I would avoid it.
Bullion: Its probably expensive to custody at a broker. Plus, there isnt any cash flows so the valuation is based on how much the next person is willing to buy it from you when you want to sell. The cost to store it makes it a challenge.
Gold Stocks: This price is generally based on estimates of how much gold a miner may anticipate that is in the ground. Probably trades somewhat in-line with gold but there is at least cash flows. The gold stocks may also own futures contracts which may experience some issues as well.
I would avoid it.
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Im not a real expert but here are my thoughts... - MUBIGDOG1 MU - 9/18 14:52:40