Further to the "Bullion vs Equities" discussion of a couple of weeks ago:
Apart from investing in SGR and other gold equities, I am considering investing in a royalty company (such as FNV) because I think it could be an excellent alternative to holding mining company equities since, as a royalty company, its trading price is tied to the price of gold without incurring the risks and costs attendant to running a business such as a mining company. But how does it compare overall to holding actual bullion?
(I realize that a royalty company is still technically an equity, but it seems to me as almost warranting a category of its own, positioned somewhere in between bullion and equities of mining companies since it shares qualities of both categories.)
I like the royalty idea relative to holding bullion because I don't want to have to hide or bury bullion somewhere, and i don't want to trust the banksters to "hold" it for me in their vaults. I realize there's always still the risk that Big Brother (or the bankster plotcracy we seem to be living under) will still confiscate everything you have, including shares in a royalty company. But at least your chances overall are better with this than holding gold mining company shares or burying your gold under the old oak tree, aren't they?
So i'm thinking maybe buying into a royalty company makes a good alternative to either owning bullion or equities. Am i missing some downside to the royalty idea that it's not much more popular than it seems to be? Appreciate your input - thanks!
(I posted much of this same message on the Agoracom page for FNV but that page has been inactive since sometime last year.)
