Resource nationalisation risk

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#1 Tue, Jun 14, 2011 - 8:57pm
silvernomics
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Resource nationalisation risk

Am I daft for not wanting to invest in Aurcana or Revett or other US based miners? Is it really safer to be in Mexico as opposed to the US, from the point of view of resource nationalisation?

I would love to be invested in these two companies but I just can't bring myself to do it.

Anyone got a view on the likelihood of resource nationalisation?

Edited by: silvernomics on Nov 8, 2014 - 5:10am
Tue, Jun 14, 2011 - 9:12pm
rock collector
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Why not hold a small position

Why not hold a small position in each? Maybe 1% of your portfolio in each ??
Mitigate the risk and still participate (albeit in a small way) in any upside.
Reward should still outweigh risk.
I hold a small position in Aurcana. 

Tue, Jun 14, 2011 - 10:21pm
caramel
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i believe there's risk of

i believe there's risk of nationalization for gold and/or silver in any jurisdiction; there's no safe bets. Either that or one day they'll tax the miners to death. This risk alone has me considering getting into all physical. Anyways, still believe miners will have their day but with an eye towards nationalization.

Tue, Jun 14, 2011 - 10:46pm
JoeTiger
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I avoid US mining companies, too

silvernomics wrote:

Am I daft for not wanting to invest in Aurcana or Revett or other US based miners? Is it really safer to be in Mexico as opposed to the US, from the point of view of resource nationalisation?

I would love to be invested in these two companies but I just can't bring myself to do it.

Anyone got a view on the likelihood of resource nationalisation?

I am the same way. I have heard too many rumors about the US Gov't imposing natural resource taxes on domestic mineral extraction. Over the past few months, I have dropped my Hecla and Revett holdings entirely.

I like Canadian mining companies that operate in Latin America (particularly Mexico).

"For you did not receive the spirit of bondage again to fear, but you received the Spirit of adoption by whom we cry out, 'Abba, Father.'" -- Romans 8:15

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