By Malcolm Stacey | Thursday 16 March 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Scuffers. As the world wobbles around on top of a gyrating beachball of economic uncertainty, mostly caused by a roller-coasting oil price, gold seems as good a bet as any. Currencies are nearly all under threat, it seems to me, which leaves gold in a great position. But apart from buying gold bars, which is inconvenient, we must consider investing in gold miners.
One such enterprise which always attracts a lot of readers whenever I write about it is Centamin (CEY). And it is now tickling its all-time high, after a bit of a soft period.
Centamin is best known for Egyptian gold. But it also has interests in Burkina Faso, the Ivory Coast (do they still call it that?) and Australia. It prospects for gold and produces rather a lot of it. Its most famous mine is the Sukari, which is quite near the Red Sea.
Early last month, the company reported that gold production was a quarter up on last time. Not only that, chums, but production costs were nicely down. Profits, before all the usual deductions, were up by 145%. I'm told that the charts show a technical advantage, too, though I’m too thick to understand charting and can’t vouch for that.
As I’ve said before, Egypt is not the most stable country on the planet, but in my experience, governments which are insecure do not over-interfere with enterprises operating in their territories. They don’t want to risk losing taxation income, you see.
So while there are some risks - a very unlikely civil war, perhaps - it may be worth taking them for the possibility of happy reward.
We're used to taking risks - just by drinking in the Punter’s Return.
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