GOLD SHARE PROSPECTS
Many readers have inquired whether I approve of leading Kaffir shares, such as Crowns, Sub Nigels and Weit Rands, as suitable investments for their dividend yields ? The answer is : Yes, provided that it is clearly recognised that even the best mines are subject to some degree of risk and that the life of a mine is not unlimited. In calculating the true yield on a mining share one should make some allowance, based on the probable life of the property, in respect of amortisation. Subject to these provisos, Kaffirs seem to me to have definite attractions. Thanks to the policy of mining low grades of ore, the companies have succeeded in achieving a remarkable stability, of dividends on the basis of the current price of gold. I do not look for any sharp rise in the price of gold if and when currency stabilisation comes, but equally I should be surprised if the price were fixed below £7 an ounce.
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