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Cost-efficient access to resources

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by Simon Hampel, 11th Jun, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Cost-efficient access to resources - ASX - Australian Securities Exchange

    "Investors seeking diversification into the burgeoning resource sector can now do so easily and cost efficiently through a listed investment company."

     
  2. Norak Bastiat

    Norak Bastiat Well-Known Member

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    16th Sep, 2007
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    Melbourne
    I'm thinking of buying some GMI instead of gold. I'm guessing they would perform similar roles.

    I have never invested in LICs before, so I have some newbie questions.

    Do I just buy GMI off the ASX? Are there any management fees? Do I get paid distributions?
     
  3. Chris C

    Chris C Well-Known Member

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    Gold isn't like other commodities, its demand isn't based on the growth/production rates of the world like many other commodities are.

    Gold is more of a hedge against inflation, which many are arguing in this high stimulus environment is becoming somewhat of a risk down the line, which is why gold strengthened slightly over 2008, whereas most other commodities completely tanked in light of the global slow down.

    Whilst I like the the principle of the GMI LIC and I will definitely look at investing in it in at some point down the line, for the time being I'm tending to think commodity prices will probably struggle a little as this global recession worsens, particularly as China and India really start to downgrade their future growth.