WA gold resurgence ‘on radar’ of North American and British investment
funds
The Western Australian Goldfields region is attracting the attention of
overseas investment funds as Australia’s mid-tier gold miners start to
outperform their North American counterparts, The Kalgoorlie Miner
reported last week.
One of the miners to benefit from US and UK investment funds has been
Saracen Mineral Holdings.
Managing director Raleigh Finlayson told The Kalgoorlie Miner it
had captured the interest of North American and British funds after this
month announcing a seven-year mine life across its Carosue Dam and Thunderbox
operations.
As the Diggers and Dealers mining forum wrapped up last week Mr Finlayson
said companies able to forecast gold mine life of about seven to 10 years had
the potential to ‘get on the radar’ of big overseas funds.
Another Western Australian miner, Gold Road Resources, now has 37% of its
register held with North American institutions, as well as some UK and
European shareholders.
Precious metals have for centuries helped institutional and private
investors protect their wealth against fluctuations in the value of other asset
classes. Recognised as a ‘safe haven’ and an essential element within a
diversified investment portfolio, gold has historically proven to increase in
value as alternative assets falter amid market turbulence.
But you don’t need to be a fund manager or even an active private investor
to own a stake in Western Australian precious metals.
The Perth Mint, which refines more than 90% of Australia’s newly mined
gold, allows investors to start building a precious metals portfolio from as
little as AUD 500 plus a standard brokerage charge through Perth Mint Gold
(PMG), or AUD 50 a month for bullion.
PMG is structured as a fully paid call option to one hundredth of a troy
ounce of physical gold which may be exercised by you at any time.
It trades on the Australian Securities Exchange (ASX) under the code
PMGOLD and suits investors who prefer to manage their gold investment within
their stockbroking account along with ASX-listed equities and other
investments.
PMG has other key benefits:
• Physically Redeemable. Unlike many gold
exchange traded products, PMG can be physically redeemed for any of The Perth
Mint’s bullion coins and bars.
• Government Guaranteed. PMGs are issued by
Gold Corporation (trading as The Perth Mint), a statutory authority of the
Government of Western Australia. The liabilities of Gold Corporation are guaranteed
under the Gold Corporation Act 1987, an Act of the Western Australian
Parliament.
• Fully Backed. PMGs are 100% covered by gold
owned by The Perth Mint.
• Low Management Fee. PMG’s management fee has
been held at 0.15% pa since 2004, one of the lowest fees worldwide for a gold
exchange traded product.
• Guaranteed Market. The Perth Mint, via its
Market Maker, will ensure PMG tracks the price of gold by maintaining
reasonable bid and offer prices and volume on the ASX at all times, in
accordance with ASX rules.
• Convenient. Trade PMGs through your
stockbroker with the same ease and convenience as investing in shares. PMG
trades on the ASX under the code PMGOLD and can be purchased by investors on
the Australian Stock Exchange.
The Perth Mint also offers three investment and storage solutions for the
many investors who prefer to buy physical gold, silver and platinum.
One of these is Perth Mint Depository Online. PMDO accounts are free to
set up and keep open until you are ready to buy some bullion. You can then
start your precious metals investment with a minimum transaction of just AUD
50. With a PMDO savings plan you can build your wealth with automatic
deductions each month.
For information more information about our choice of investment options,
visit The Perth
Mint website.
Read the PMGOLD product disclosure statement here.
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