Sailfish is a precious metals royalty and streaming company. Within Sailfish's portfolio are two cornerstone assets on advanced stage projects in the Americas: a gold stream equivalent to a 3% NSR on the San Albino gold project (~3.5 sq. km) and a 2% NSR on the rest of the area (~134.5 sq. km) surrounding San Albino in northern Nicaragua; and an up to 3.5% NSR on the Tocantinzinho gold project in the prolific Tapajos district of northern Brazil. The acquisition of Terraco Gold Corp. adds a potential cornerstone asset: an up to 3% NSR on the multi-million ounce Spring Valley gold project in Pershing County, Nevada.
Are you wondering if you should invest in gold for retirement? Let us walk you through the pros and cons of this strategy.
Gold is known as a safe-haven investment that people from all walks of life can turn to in times of turmoil. While its price rises and falls, interest in the sector is fairly constant.
One question that many people have is, “Should I invest in gold for retirement?”
That’s a fair question, and not just because gold is a popular investment. Just think — while the gold price is subject to fluctuations, it’s risen about 225 percent in the last decade, and over 500 percent since 2002. For those looking at investing in gold for their individual retirement account (IRA), those returns are hard to ignore.
With that in mind, it’s interesting to take a balanced look at gold investing for your retirement plan — after all, though gold is certainly a compelling investment, it’s not right for everyone. The lists of pros and cons below are designed to help you figure out if gold for retirement will work for you.
Gold for retirement: The pros
If you’ve already invested in gold, you’re likely well aware of the benefits that can come when you buy gold. However, you may be wondering if those financial benefits will carry over if you invest in gold for your retirement savings. Here’s a brief overview of the positive side of saving gold for retirement:
- Gold is good in a crisis: As anyone who gives out investment advice will tell you, the gold price tends to rise during economic and political volatility, meaning that in the face of a crisis, it’s often either stable or on the rise. Some investors consider it an insurance policy. “I sleep better at night owning physical precious metals,” Rick Rule of Rule Investment Media has said. And who doesn’t want peace of mind that there will be wealth in retirement?
- Gold is a hedge against inflation: On a similar note, gold is prized as a hedge against inflation. In other words, no matter what happens with paper currencies, the value of gold will stay constant.
- You can physically hold gold: If you buy gold bullion, such as gold coins or gold bars, you’ll have a tangible asset that you can access readily. That’s partially why gold has advantages in a crisis — unlike non-physical assets like gold stocks, physical gold is an entity that you can grab hold of easily in times of volatility and know you have something of value.
- Gold has gained significantly: Last but not least, don’t forget the major gains gold has made in the past, as secure levels of supply and demand for the yellow metal have pushed up prices. As mentioned, gold has seen big price increases not only recently, but also in the last century. And with uncertainty running rampant in the world today, it could be poised to move even higher, leaving you with more wealth in your golden years.
Gold for retirement: The cons
That’s a solid list of pros, but before investing in gold for retirement, it’s important to also take a look at some of the problems it can entail. Here’s a quick rundown of the other side of the argument:
- Gold doesn’t pay interest or dividends: While gold is good to have in times of turmoil and can be better to hold than paper currencies, you won’t be able to profit from your gold unless you make withdrawals and sell it. That means you’ll have to always have an eye on the market so that you know when you should sell — perhaps not how you want to be spending your time later in life.
- Gold might not be the best inflation hedge: As discussed, gold is considered a hedge against inflation, but as some market watchers have pointed out, that may not be the case.
- Stockpiling gold requires space and/or money: It’s clear that holding physical gold can be an advantage, but it also has its drawbacks. For instance, where are you going to put your gold bullion? You could keep it at your home, but most advisors would sway you away from that method because you’ll need space and a secure place to put it; both factors are potential issues for those looking to downsize for retirement. And if you want to hold gold elsewhere, there will be associated costs and you’ll also lose the ability to access your gold whenever you want.
- Gold can be volatile: We’ve already gone over the massive price gains gold has seen in the past, but it’s important to note that during that time gold has seen big drops as well. For those hoping for a stress-free IRA investment, these price changes could prove to be too much.
Gold for retirement: The upshot
All in all, it seems that investing in gold for retirement is much the same as investing in gold in everyday life: diversification is key. While gold can be a part of your retirement portfolio, you should make sure to balance it out. If you’re able to do that, you may see exciting returns appear in your savings accounts in your later years.
This is an updated version of an article first published by the Investing News Network in 2016.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
In addition to generating quick cash flow and funding further exploration, infrastructure and production initiatives, stockpiles can also be very advantageous from an investment standpoint.
Mining stockpiles are precisely what they sound like — a surplus of mined material, either accumulated on the surface or dug and piled for future use. They originate from a variety of factors, including supply temporarily outstripping demand, production without immediate access to a treatment plant or the acquisition of a previously mined project. Although they don't always contain mineable or renewable resources, there are many benefits to production when they do.
Aside from being one of the most efficient ways to restart a project, stockpiles are an incredibly effective way to store large quantities of material, and tend to exist in one of three forms.
The most generic stockpiles are made by standard bucket loading and dumping techniques. Ramp stockpiles, meanwhile, are constructed and piled high using a narrow ramp, making them optimal for storing very large volumes of material in a limited area. Finally, bin stockpiles store minerals in a row of three-sided bins, enclosed inside hard walls to keep types of material separate from one another.
When acquiring a stockpile, a company must assess both the economic value of the leftover resources and the geologic factors influencing their potential viability.
Typically, this starts with using drilling and density-sensing equipment. The data collected from that equipment is then used to calculate the stockpile's overall tonnage. Unfortunately, because of their irregular shape, measuring stockpiles in this fashion tends to be difficult, especially from the ground.
Recent advances in artificial intelligence and automation have rendered this much less of an issue. Paired with neural networks and machine learning, techniques such as drone photography and laser-based measuring are capable of outputting faster, more accurate estimates than ever. Automation also streamlines production, inventory management and refinement across the board.
In PricewaterhouseCoopers’ Mining Report for 2021, the analyst noted that digital transformation and automation are currently shaping the entire mining industry and will continue to do so for years to come. The top 40 largest mining companies profiled in that report have already taken great strides in that regard. Driven by COVID-19, they have not only embraced their adoption of automation and digitization, but accelerated it — thereby allowing them to open new avenues for both investments and capital.
Stockpile projects can finance future exploration
Stockpile mining projects can cover all types of metals and minerals. For instance, production at Energy Resources of Australia's (ASX:ERA,OTC Pink:EGRAF) Ranger uranium mine was done entirely with stockpiled ores from 2012 onward, when mining operations ceased. Although the mine has ceased production, until recently it was one of the top suppliers of the global energy market.
Situated 64 kilometers southeast of Phoenix, Arizona, the Cactus project is a brownfields copper mining operation wholly owned by Arizona Sonoran Copper Company (TSX:ASCU,OTCQX:ASCUF). Existing stockpiles will play a major part in onsite production, which has a targeted start date of 2024. In April 2022, Arizona Sonoran announced a strategic partnership with Rio Tinto (NYSE:RIO,ASX:RIO,LSE:RIO), part of which involved a strategic investment of up to C$30.5 million.
The build up of a stockpile requires careful treatment to ensure the right grade is correctly modeled and that the right value of the stockpile is reported on balance sheets. When calculated properly, companies like CMX Gold & Silver (CSE:CXC) can leverage revenue from stockpile resources to help finance further exploration and production.
CMX Gold & Silver is a junior silver and gold mining company that is currently working to reactivate the high-grade Clayton silver project in Idaho's Bayhorse mining district, situated in Custer County. The property, which is 100 percent owned by the company, covers roughly 276 hectares and contains extensive mineral stockpiles.
First discovered in 1877, the Clayton silver mine was historically one of the largest silver producers in the state. Records indicate that by the time mining operations ceased in 1986, the mine produced roughly 7 million ounces of silver, 86.8 million pounds of lead, 28.2 million pounds of zinc, 1.7 million pounds of copper and 1,454 ounces of gold. According to these same records, the mine may still contain over 227,000 metric tons (MT) of ore that has yet to be mined.
CMX estimates that the mine may contain many times more resources that have yet to be proven. Previous owners and operators engaged in very little exploration or development, which means there is significant potential for confirming and adding more mineral resources underground. Estimates for the mineral content of this stockpile range from 500,000 MT to 1,000,000 MT. Once this is achieved, the company will operate a mill with double to triple the capacity of the project's former mill, further increasing the potential value of the mine's resources.Resulting from improvements in ore-sorting technology, many companies pursue this stockpile mining. The appeal of the opportunities to use existing, accessible resources spans multiple jurisdictions. In Nevada, the Terraced Hill Clay, New Discovery and Blanco projects are all stockpile based. This proven mining method has traction in Canada and in Australia, with interest in these prospects growing steadily.
A company operating a stockpile mining project is positioned to generate cash flow by producing resources from a stockpile. Since the costly step of mining has already taken place, the company can focus on assessing the value of the resource as well as establishing a market for its future product. Investors can benefit when a company processes stockpile resources with a quick, low-cost mining operation.
This INNSpired article is sponsored by CMX Gold & Silver (CSE:CXC). This INNSpired article provides information that was sourced by the Investing News Network (INN) and approved by CMX Gold & Silver in order to help investors learn more about the company. CMX Gold & Silver is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with CMX Gold & Silver and seek advice from a qualified investment advisor.
"The Fed still has an enormous amount of capacity to raise interest rates without killing the economy," said Jeffrey Christian of CPM Group.
Jeffrey Christian: Fed Can Hike a Lot Further, How Gold and Silver Will Perform youtu.be
The US Federal Reserve is taking steps to fight inflation, and two rate hikes are in the bag so far this year.
Many market participants are skeptical about how much higher the central bank will be able to go, but Jeffrey Christian, managing partner at CPM Group, believes it can move rates "a lot further."
Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), he said there's still quite a bit of room before real demand and borrowing start to hurt.
"The Fed still has an enormous amount of capacity to raise interest rates without killing the economy," he said.
In terms of whether a recession is in the cards, Christian said many people are calling for one in 2023, and that timeline could be possible. However, he doesn't think it will happen that quickly.
"I don't see necessarily hitting the limits of growth that would trigger much higher inflation, which would trigger a recession. I do think it's coming, but I wouldn't be surprised if it's 2024 or 2026," he said.
Christian said gold and silver prices are weaker than his firm expected they would be at this time of the year, and he thinks the markets will be vulnerable to further price weakness for the next few months.
However, underlying issues will provide support and prevent the metals from falling too far.
"We're still looking for prices to be a little bit weak in the next few months, and basically move sideways into next year," he said. "At some point, those bigger issues become much more prominent and much more demanding of public attention — and then you start seeing a revival of investment demand for gold and silver and higher prices."
Watch the interview above for more from Christian. You can also click here for our full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Marvel Discovery Corp. is pleased to announce the appointment of Ms. Diana Alvarez as Corporate Secretary, Director effective immediately.
Marvel Discovery Corp. (TSX-V: MARV), (Frankfurt: O4T1), (MARVF: OTCQB); ("Marvel", or the "Company") is pleased to announce the appointment of Ms. Diana Alvarez as Corporate Secretary, Director effective immediately. The Company has also accepted Mr. Mark Luchinski's resignation, management thanks Mark and wishes him well in his future endeavors. Ms. Alvarez fills the vacancy created. Miss Alvarez is a paralegal with 15 years of experience working in corporate and securities law. Having worked for some of the leading law firms in Vancouver, she is well versed in corporate compliance, governance, and administration of public traded companies. Ms. Alvarez has spent her career focused on resource issuers and has completed her diploma in paralegal studies.
About Marvel Discovery Corp.
Marvel, listed on the TSX Venture Exchange for over 25 years, is a Canadian based emerging resource company. The Company is systematically exploring its extensive property positions in:
- Newfoundland (Slip, Gander North, Gander South, Victoria Lake, Baie Verte, and Hope Brook - Au Prospects)
- Athabasca Basin, Saskatchewan (Highway North - Uranium Project)
- Atikokan, Ontario (BlackFly - Au Prospect)
- Elliot Lake, Ontario (East Bull - Ni-Cu-PGE Prospect)
- Quebec (Duhamel -Ni-Cu-Co prospect & Titanium, Vanadium, and Chromium Prospect)
- Prince George, British Columbia (Wicheeda North - Rare Earth Elements Prospect)
The Company's website is: https://marveldiscovery.ca/
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
President/Chief Executive Officer, Director
Tel: 604 716 0551 email: email@example.com
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward- looking statements in this press release relate to, among other things: completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.