Gambling My Own Pension: September 2013

Performance so far

Since the start of 2012 I have:

Gained 2.94% (excluding dividends and costs) of my investment - and the market is up 26.30% according to Google Finance

Been rated in the 65th percentile of all listed Trustnet.com OEIC managers (including dividends and costs - assuming that the market-average 1.6% per annum TER is charged across the board)

Achieved an average yield of 1.44% (averaged over the last twelve months) - compared to a market average of 2.8% (according to Digital Look).

Invested in a way that should deliver a pension around 48% of the value of my current income, based on current annuities and growth rates

Saturday 21 September 2013

Gold Resource

Readers know my penchant for gold and those who pull the stuff out of the ground....

My most recent purchase, Gold Resource Corporation fell off a cliff (a 21% drop) on the morning of Tuesday 17th September. As ever, not learning from my earlier African Barrick Gold experience, I got involved.

The drop seems to have been spurred by a couple of changes in the business:

The resignation of the CEO, William Reid, who will be replaced by his son Jason Reid
A proposed 8% on precious metals miners in Mexico (where Gold Resource Corporation has all its mines and exploration)

I am not concerned about either point particularly - Gold Resource Corporation is one of the cheapest listed gold producers in the world, and neither an 8% levy or a change in the CEO fundamentally changes the business.