The Midas Touch
Friday, 28 March 2008 03:28
Written by Staff
The flipside of this rainy day strategy is that while physical gold may be worth its weight, actual returns can be less than dazzling, says Christianson. Alternatively, you can always invest in gold company stocks. The key factor with any gold company is, is it mature, or is it young? Since mature companies by definition have already found gold in them there hills, their investors see dividends. Buying lower-priced stocks with a younger company means a greater windfall should it strike you-know-what; however, investing in prospecting entails genuine risk.
Nonetheless, there’s real enthusiasm these days about Manitoba gold exploration, and recent financial reports say mining companies are expected to spend about $100 million in the province this year – up twice as much from last year. The real kicker? In 2006, the Fraser Institute survey of exploration and mining companies ranked Manitoba the world’s best jurisdiction for investment attractiveness, based on its mineral policies.
If you do decide to gamble, hedge your bet: research the company’s structure, management, and production first. Ty Wirvin, a corporate finance associate at Total Wealth Management, suggests checking out a few names in Manitoba precious metals to start: San Gold Corp., Carlisle Goldfields Ltd., Garson Gold Corp., Harvest Gold Corp., Rolling Rock Resources Corp., Black Pearl Minerals, and Puma Explorations Inc.