The Cost Of “Safe” Jurisdictions

Note: The following True Vine Letter was originally published as Premium content on December 22, 2020. I am publishing it here as a sample of what Premium offers. I strive to write not about everything there is to know but the most important things to know for potential investments. You can learn more about the Premium service here.

 

Introduction 

I am a student of history and always find it helpful for putting current events in context. In this phase of my life I have little time for reading so I listen to audiobooks while doing other things. I am currently going through Carl Sandburg’s Abraham Lincoln: The Prairie Years and The War Years which I intentionally selected for perspective on a deeply divided nation.

The referential wisdom of history is always speaking concerning the present. I am hearing it saying now that we are living in a time of heightened mass hysteria. This mass hysteria has been used to justify reckless levels of government borrowing and central bank money creation. As I wrote about in The Truth On Investing, debt and inflation create deceptive economic environments. The rampant speculation in various stocks that we are currently seeing is the fruit of this.

Gold and silver are akin to the “God” of the economy—an everlasting, never changing, standard of truth. Gold is shining brighter nowadays in the midst of mass hysteria and ever increasing debt levels that can only be repaid, if ever, by inflating them away.

I am continuing my analysis of gold and silver producers, specifically looking for a few that can generate good levels of free cash flow to pay dividends. Lately, I have been thinking about dividend paying gold producers as savings accounts at (real money) banks that do or can potentially pay much higher levels of interest than what is currently available elsewhere.

Agnico Eagle

In many ways, Agnico Eagle (AEM) is similar to Kinross Gold (KGC). Here are the ways that stand out for me:

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I am a shareholder of Kinross Gold.

The information presented in the True Vine Letter is general in nature and designed for do-it-yourself and professional investors. It does not have regard to ...

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