Precious Metals vs. good Thai stocks.
I am generally on the side with the investor attractiveness in select metals for protecting the horror of fiat money, which will likely debase paper money for years to come. Yes, cash is trash, over time. But the Thai Baht besides Swiss Francs, should hold up relatively better.
My view is just a bit more tamed on these -and in any event strongly believe that select Thai value stocks/concept here can beat those returns. Only time will tell!
When I was in Switzerland last July I saw an interesting report on UAC (Uranium Energy Corp), it got all the glorious write up and how the world is running out of it and so on… See http://money.cnn.com/quote/quote.html?symb=UEC
To me this was the more obvious precious metal pick for several reasons -not least because its precious and needed for the expected expanding nuclear power generation. After all, if you have not heard already, yes we are running out of fossils fuels. Coal price increases are likely a yes for now, but the world's coal-fired power plants are continuously converting the earth's atmosphere into a smoking lounge.
But I did not invest in UAC nor did I mentioned it here...., instead stuck/stick to my prodigy here. (Yea, I did buy a few Aussi Kangaroo gold coins, buried 7 foot deep).
I just saw how (US AMEX listed, not the Thai stock with the same symbol) UAC ($3.30) just lost about half its value in the past 2-3 days! Showing how some of those "so precious" metals have more risk then at first apparent. Many of those heavy metal boys called “Uranium the trade of the decade”. Yet post the Japan tragedy, its price and value sank faster than any stock here.
Also of late we see how Gold does not really rally much, no matter what the latest crisis is. Regardless of the reasons for that: Reality is reality the gold price seems restrained. Gold is no higher today then pre-Middle East flar-up and/or pre Japan horrific set back. Of course over the past few years gold/silver have been a stellar performers, but they still can't beat mine here. J
While I read some of these bullish metal links I stick to what I do/know/understand best here and as you read today again: view hiding it all-out in our stock gems, not least good food/Thai retail and alternative energy stocks which we know have a strong future, while the pay high dividends along the way. In the meantime we should all note how Thailand's central bank, Baht currency and its high foreign reserves management etc are in rather excellent shape and not be confused with the reckless ways of the US FED.
"Unless a lot of people die, I remain positive for Nuclear Energy. Today I had lunch with a money manager from Singapore. He is very positive on Thailand, as the Government and the Central Bank have things under control." A very seasoned and international investor pro friend of mine, from Zurich, Switzerland.
Honesty, consideration and accountability are the foundation of trust and integrity.
Over the next few months Thai politics is going to flare-up again some with the election coming, likely by mid year. The SET seems to be taking it in stride as the index is holding-up around 1000. We at this site refuse to get sucked into political comments or taking of sides -as that is beyond Thaistocks.com. Thank you in respecting this.
While especially many Westerners’ like to remind us daily (and fairly so) on the political mess and lack of stability, its far from just in Thailand. As pointed out in my last article, Belgium beats the world record with no government at all now in place for nearly a year…and remarkable so, only 13% of Brits think their elected official tell the truth, a dismal showing compared to doctors and teachers who were rated as being truthful by 92% and 88% respectively*. And in the US the cloud of cynicism hanging over the government there is just as palpable.
Yet today political integrity and violations are much more easily exposed and ultimately damaging then in ever in the past. Citizens use of social media often publically unearth dishonesty, highlight failed promises or reveal unsavoury relationship with influential lobbyists. The West likes to point out corruption in developing counties while failing in the same breath to point out the gigantic abuses of their own lobbyists.
While there is always volatility and risk and while there are individual stock picks I will be wrong about, I remain convinced in my model portfolio’s overall good position I so remain fully invested.
Best Regards,
Paul A. Renaud.
* “Trusts in politicians hits an all time low” See The Observer, (September 27, 2009)
