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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (26143)	10/5/2003 10:53:35 AM
From: Tommaso	Respond to of 206317

If energy prices just stay firm (and oil is certainly doing better than that) the returns from the Canadian royalty trusts will be very good and certainly qualify as old-fashioned, genuine, investment where you expose your capital to some risk with the expectation of getting a better return than keeping the money in the bank. NCN has cut back its payout so that it has a big cushion of accumulated cash and the yield on that payout is 13.44% right now, much of it tax-deferred. In the event of a very cold winter, with much higher gas prices, the cash flow of these trusts would rise very fast. And finally, they do to some extent act as a hedge against an overvalued U. S. dollar and against general currency inflation. A decline of the dollar immediately translates into higher prices for oil and gas sold on a world market, and producers will expect (and get) higher paper-currency payments for their products in all the fiat currencies. Anyhow, those trusts (which continually acquire new properties, unlike U.S. energy trusts) offer a chance for smaller investors to stay in the energy market without taking on speculative or leveraged positions.