A Beginners Guide to Gold Mining Streaming & Royalty Bonds

A Beginners Guide to Gold Mining Streaming & Royalty Bonds

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We all want to save more money toward our families future. Finding the right investment for you is key to helping your money work harder for you.

Investing in a Gold Mining Steaming or Royalty Bond scheme could enable a greater return on your money than you would receive from a day to day savings account.

Contrary to popular belief, you don’t have to have a lot of money to start investing. Really, all you need is to be able to lock a small sum away, think at least 3 years, and be clued up with the right knowledge to make sure that you are making a profit from your investment.

This is when a company like Raptor come in. If Gold Mining Streaming is something that you’re interested in, then going to a company that does it’s due diligence is key to you seeing a return.

Like all investments there is risk. Weighing up how much risk you would like to take verses the amount can see a competitive annual return. 

Like all investments, you need to understand the difference between all your options including how your returns will be made and the risks involved.

What is a IFISA Investment?

A bond or fixed interest securities are loans you can send to an individual company or the government. Simply, you are lending money to a company in exchange for interest payments.

So in the case of gold mining, the bond is wrapped in what’s called a Innovation Finance ISA. You’ll money would be used to provide stream and royalty financing to mining projects that specialise in gold and precious metals.

This is just one example of a IFISA bond. There are many others out there.

Your Bonds will pay you a fixed rate of interest which never changes over the Bonds life.

You can invest as much as you like depending on the company but the minimum is normally £2000.

It’s always recommended that you find professional advice before making any sort of investment.

Finding a professional who can talk you through the ins and outs of your investment is recommended. They can help you balance the risks, assess the current market and work out any fees you may be charged.

Before you see anyone, sit down with your family and decide how long you can afford to invest the money for. Are you saving for a reason? Does the amount need to reach a goal?

How do returns work?

Your Bond investment returns are normally paid out at a set rate per annum. This is then paid to you on your redemption date and this is when any fees will be taken out.

What are the possible risks?

With all investment there is risk. With IFISA bonds, because they offer a fixed rate of interest, your money stays invested in that bond for the agreed term.

These are what’s called a secured investment. They are not protected by the Financial Services Compensation Scheme.

This means that if the company you have a Bond with goes under you may lose all or part of your investment including any interest you are owed. Before you invest, always read the FSCs guide to what happens if something goes wrong. It’s also best to know now what could be covered and what’s not.

This should be all laid out to you if you decide to use an independent advisor. If you decide against advice, it may be wise to spread out your money over different investments to reduce the risk and stop one mistake being a costly one.

If you are new to the world of Gold Mining Streaming & Royalty Bonds then please do seek financial advice and do your research.

Paying for help means you have someone else, who knows what they are doing helping you to decide on the risk factors and possible gain. Like everything in life, the bigger the risk the bigger the gain will be but it’s only a decision you and your family can make. 

When is the right time to invest?

Deciding on when to invest is down to you and your family. Make sure that you are happy to tie your money up for a long spell and that it’s not going to put you into financial hardship going forward.

Once you believe that you are in a staple position to start investing, look for a professional that gets you and your situation. Ring around and meet as money as possible. Get a feel for how they work and ask them outright how they judge risk. Does it align with your values as a family?

No “good” or decent advisor would allow you to invest your emergency fund or back-up savings. Always pay off any debt and know, in your heart that if you lost it all tomorrow that you wouldn’t be financially hard off. 

Then work out as a family and with your advisor what your financial goal is and why you want to invest right now. Is it to help your children through university? For a retirement fund? To pay off your mortgage?

Go through one more time and understand all the risks. What level are risk can you take? You don’t want to be waking up in the middle of the night worried about it.

My one piece of advice? Please only invest what you can afford to lose and nothing more.

This is a collaborative post.

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