BlackRock World Mining digs for income


#1

Investment Trust Analyst revisits BlackRock World Mining as the board of the £900 million trust asks shareholders for approval to widen its investment
[See the full post at: BlackRock World Mining digs for income]


#2

The mining sector has in the past scared me because of its image of cavalier and megalomaniac boys (and it is always men) building empires and making themselves rich.

I am really tempted by this fund though because the sector is low, I keep reading about it becoming more shareholder friendly. Also, there are some of us girls running a couple of these businesses now and, importantly for me it has a regular income from royalties coming in.

I’m not looking for income per se but when the markets these guys operate in get a bit tougher having this income from low cost producing mines acts as an insurance policy.

That’s why my new year resolution is to buy a bit of this.

Love to hear from some other investors?


#3

I bought this shortly after this article was published @SuperGirl It hasn’t done a lot since them but I notice it has been recommended by other analysts over the new year period.

Your point about the price being low is one I really agree with. If like me you like to invest a little bit like Warren Buffet then price is all important.

Getting in at this price and at this point in the cycle seems like a good idea to me.


#4

I’m rejigging my ISA and I’m thinking about investing £1000 in to this trust. That’s about 10% of my ISA.

I haven’t been investing for very long but my uncle told me investment trusts are the best way to go. I’m just wondering if that is to high or too low a percentage of my portfolio to invest here?

I really don’t know but if someone else did I’d love some help.


#5

Hi @SarahB it depends on a number of matters that relate top your personal circumstance.

How long do you want to invest for?
How much risk you are prepared to take?
What are you saving for? a particular event or for long term wealth.
Your age matters too. If near retirement like I am you might want to take less risk.

Without telling us more it’s hard to respond.


#6

Thanks @Smithy101

I’m 25 and my aim is simple, to get filthy rich from my £10k ISA. But I’m happy to be patient and wait a whole year until it happens :wink:

Only kidding!

Unless I marry a rich man I might put my savings towards a deposit for a home in around 5 years time, so I wanna leave it to grow till then.

I dont really like the idea of risky investments at all but the interest from the bank sucks.

I have around £2k in cash. I read the BlackRock Mining trust article and thought it sounded like an interesting option that was maybe different from the other one I have. :-/


#7

………I also really like the idea of this German trust, DBAG, for the same reason (different from the rest), but also it’s done so well for so many years….


#8

@SarahB because of the costs involved in buying and selling I wouldn’t invest less than a grand in any trust.

Ultimately the decision on buying this is one you need to make yourself. For me it appeals a fund that as well as having risky exposure to the mining sector, that could potentially deliver high returns, it mitigates the risk a wee bit with this royalty stream.

For me, if you want exposure to this sector then this is the fund to go with.

@Smithy101 's questions are exactly the sort you should ask yourself before you invest but a 5 year time horizon seems okay to me.

Good luck hen!


#9

Not for me. Who knows how far China’s slowdown has to go and it’s China that’s been driving demand for mining products.

There’s much better places to invest your money IMHO peeps.

Want growth, go for technology or Europe. Herald investment trust or Henderson EuroTrust / Henderson Euro Focus.