PETER HAMBRO : How to buy gold at a discount

That’s a staggering price tag for a single gold bar.

That’s a staggering amount of money, especially considering the value of gold in 2023. But, what if I told you that this bar is now worth a whopping $50,000 or £20,000? That’s a 350% increase in value over the past 40 years. That’s what happened to the 400 Troy Ounce Large Bar of gold.

The Rise of Gold Prices

In the 1980s, gold prices began to rise steadily, driven by a combination of factors. The 1970s saw a sharp increase in inflation, which eroded the purchasing power of the dollar. As a result, investors began to seek alternative assets that would maintain their value over time. Gold, with its limited supply and high demand, became an attractive option. Key factors contributing to the rise in gold prices: + Inflation + Limited supply + High demand + Economic uncertainty

The Impact of Central Banks and Governments

Central banks and governments played a significant role in the rise of gold prices. In the 1980s, many countries began to devalue their currencies, leading to a surge in gold prices.

The value of gold stocks is not what it seems.

The gold mining companies whose shares are traded on the world’s stock exchanges can be valued by measuring their published resource and reserve ounces of gold.

The Problem with Trading Gold Stocks

The gold mining industry is a complex and opaque market, making it challenging for investors to accurately value gold stocks. The main issue is that the value of gold stocks is not directly tied to the actual amount of gold in the ground. Instead, it’s based on the company’s ability to extract and sell gold, which can be affected by various factors such as exploration costs, production levels, and market conditions.

The AISC is the cost of extracting the gold from the ore, plus the cost of processing the gold, plus the cost of transporting the gold, plus the cost of selling the gold. The AISC is a good indicator of the profitability of a gold mining company.

The All-In Sustaining Cost (AISC) of Gold Mining

Understanding the Concept

The all-in sustaining cost (AISC) is a crucial metric in the gold mining industry, providing a comprehensive view of a company’s profitability. It encompasses the costs associated with extracting, processing, transporting, and selling gold, giving investors a clear picture of a company’s ability to generate profits.

Calculating AISC

To calculate AISC, mining companies must consider the following costs:

Cost of extracting gold from ore: This includes the cost of drilling, blasting, and hauling ore to the processing plant. Cost of processing gold: This includes the cost of crushing, grinding, and separating gold from other minerals. Cost of transporting gold: This includes the cost of transporting gold from the processing plant to the refinery.

The Gold Investment Opportunity

GITG is a type of gold investment that offers a unique opportunity for investors to buy gold at a discounted price. This discount is due to the fact that the gold is not being used immediately, but rather being held in a reserve for future use. As a result, the price of the gold is lower than the published price of gold.

Benefits of Investing in GITG

Lower upfront cost: By investing in GITG, investors can buy gold at a lower upfront cost compared to buying gold at the published price.

The Rise of Small Exploration Companies

The small exploration company landscape has undergone significant changes in recent years. The industry has seen a surge in the number of new players entering the market, driven by advances in technology and a growing demand for natural resources.

This is where the big producers have an advantage. They have the resources to invest in drilling and assaying, and they have the scale to make a significant impact on the gold price.

The Role of Big Producers in the Gold Market

Advantages of Scale

Big producers have the resources to invest in drilling and assaying, which can lead to significant discoveries and increases in production.

The Venture Exchange is not for the faint of heart. It’s a tough market, and you need to be prepared to put in the work.

The Rise of the Venture Exchange

The Venture Exchange, located in Toronto, Canada, has become a hub for startups and investors alike. In recent years, it has experienced significant growth, with the number of listings increasing by over 50% in just two years. This surge in activity has made the Venture Exchange a go-to destination for entrepreneurs and investors looking to capitalize on the latest trends and innovations. Key statistics: + Over 50% increase in listings in just two years + Over 100 companies listed on the Venture Exchange + Average daily trading volume of over $1 billion

The Benefits of Listing on the Venture Exchange

Listing on the Venture Exchange offers several benefits for startups and investors. Some of the key advantages include:

Increased visibility and credibility: By listing on the Venture Exchange, startups can gain exposure to a wider audience and establish themselves as credible players in the industry. Access to capital: The Venture Exchange provides a platform for startups to raise capital from investors, which can be crucial for growth and expansion.