Exposure to Gold: How? How about PM stocks?

[Peter90]

If you decide to invest in gold, which way would you choose?

And how about precious metals companies?

[Peter90]

Let's start with Franco-Nevada

From their Website: "Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets."









Metal royalty and streaming companies provide funds for mines in exchange for future payoffs.
Royalty companies receive a fixed percentage of the revenue generated by a mine, while streaming companies receive physical metals.


Benefits of Investing in Royalties and Streams

A royalty and streaming company has several advantages, such as diversification, wide margins, and lower risk.
Since these companies invest in many mines at once, if one fails, they may still receive revenue from other mines.
They can also diversify the risk by investing in mines in different stages. Instead of only investing in mines in the production stage, these companies also buy stakes in mines that are still being developed. By having multiple, some a much as 200, mines in various stages of development, royalty and streaming companies are less impacted if a few of the mines are not able to generate revenue.

[Peter90]

Barrick Gold

Barrick had been the world's largest gold mining company until Newmont Corporation acquired Goldcorp in 2019.

Headquarters: Toronto, Canada

Number of employees: 18,421




2022 HIGHLIGHTS

GROUP GOLD PRODUCTION = 4.1 MILLION OUNCES

NET CASH from OPERATING ACTIVITIES = $3.5 BILLION

FREE CASH FLOW = $432 MILLION

NET EARNINGS = $432 MILLION

[Peter90]

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[Peter90]

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[Peter90]

[Wiseman]

The most important question ( If I am going to invest ) , you can buy bullion but then sell them extremely difficult , the same with coins , with coins a little easier as they are considered collectible goods but buying bullion you can sell them only in the bank in which you bought them , selling to another bank not where you bought bullion from you will require a huge discount and do not forget that without papers that you bought it you will not be considered as the owner of this gold ) ) all very difficult .

[Peter90]

The most important question ( If I am going to invest ) , you can buy bullion but then sell them extremely difficult , the same with coins , with coins a little easier as they are considered collectible goods but buying bullion you can sell them only in the bank in which you bought them , selling to another bank not where you bought bullion from you will require a huge discount and do not forget that without papers that you bought it you will not be considered as the owner of this gold ) ) all very difficult .

Very true Wiseman
when one buy/sell bullion the spreads are huge!

Sometimes it's very difficult to find a business or a shop where to buy/sell bullion. Most banks don't have a bullion office.
The problem at the selling point - at least in my country - is not to prove that one is the owner but to prove that the bullion is not fake gold 

Two ways to circumvent those issues: a) shares of a ETF or some other funds backed by bullion; b) stablecoins backed by bullion.