Thank you for passing on tidbits of the conversation and your thoughts about them.
Gary October 31, 2022
Sure thing. I just want to be transparent and up front about anything that seems relevant.
Gary November 1, 2022
Comment from subscriber Mike by email (WP won’t allow him to comment on protected NFTRH posts for some reason)…
Gary,
You say:
“Moving forward, if/as our plans for the gold mining sector play out, I am going to focus on established names like AEM, GOLD, NEM, KGC… even NGD, BTG, and the established royalties like WPM, RGLD, FNV, etc. These companies will track the sector – and by extension, NFTRH analysis – much better than speculations in the junior patch. My/NFTRH analysis is FOR the sector, not so much any individual stock.”
When I look at GDX, their top holdings include all of those.
Could you elaborate on why you’d risk individual holdings vs. the GDX (or GDXJ or XME) type ETFs?
I understand on juniors, maybe it would be for that home run. But when you’re talking bigger companies, personally I like the idea of spreading around the risk esp. buffering individual earnings misses for example.
Just curious, and please remember I can’t post protected.
Mike
My response follows…
Gary November 1, 2022
Well, a couple reasons (but I’d have no problem using GDX either).
1) I want to pick within the group. e.g. AEM over KGC as an example. I want to weight individual positions the way I want them, not the way GDX wants them.
2) If I buy GDX I am buying the fund company that manages it to some degree. If I am buying an individual equity through a broker I am buying that company’s certificate.
Thank you for passing on tidbits of the conversation and your thoughts about them.
Sure thing. I just want to be transparent and up front about anything that seems relevant.
Comment from subscriber Mike by email (WP won’t allow him to comment on protected NFTRH posts for some reason)…
Gary,
You say:
“Moving forward, if/as our plans for the gold mining sector play out, I am going to focus on established names like AEM, GOLD, NEM, KGC… even NGD, BTG, and the established royalties like WPM, RGLD, FNV, etc. These companies will track the sector – and by extension, NFTRH analysis – much better than speculations in the junior patch. My/NFTRH analysis is FOR the sector, not so much any individual stock.”
When I look at GDX, their top holdings include all of those.
Could you elaborate on why you’d risk individual holdings vs. the GDX (or GDXJ or XME) type ETFs?
I understand on juniors, maybe it would be for that home run. But when you’re talking bigger companies, personally I like the idea of spreading around the risk esp. buffering individual earnings misses for example.
Just curious, and please remember I can’t post protected.
Mike
My response follows…
Well, a couple reasons (but I’d have no problem using GDX either).
1) I want to pick within the group. e.g. AEM over KGC as an example. I want to weight individual positions the way I want them, not the way GDX wants them.
2) If I buy GDX I am buying the fund company that manages it to some degree. If I am buying an individual equity through a broker I am buying that company’s certificate.
Regards,
Gary