One of the investment alternatives most popular investments are cedars. This type of asset allows you to invest in foreign companies in different sectors such as, for example, mining sector.
From iProfessional we tell you how to invest in these assets, such as Cedear gold from the Barrick Gold company.
What is Cedear gold?
He cedar gold consists in the Cedears of the Barrick Gold company. It is one of the main gold mining companies worldwide, based in Toronto, Canada. Founded in 1983, it is one of the main companies dedicated to the exploration, development, production and sale of gold as well as copper.
The company has operations in a large number of countries, including Canada, the United States, Australia and most countries in Latin America and Africa. Likewise, over the years, it has demonstrated great strength in the market, creating value for its investors.
How to buy Cedear gold?
To buy them cedars of the company Barrick Gold you must have an account in a local broker, as well as a Savings bank either current account in a bank or financial institution, since, to send the funds to the brokeryou must do it from an account that you own.
Barrick Gold is one of the most important mining companies in the world
Likewise, it is important to consider that some banks allow you to directly purchase the cedars from your homebanking, although commissions are higher. Assuming that you are interested in purchasing the cedars Through a broker you must follow the following steps:
- Have a account in a broker and deposit money into the account. It is important to clarify that you can only deposit money through a wire transfer of your ownership
- Go to the section “buys” of assets and go to the section Actions
- Search the Cedear through its abbreviation (GOLD)
- Enter the quantity and lead time (immediate count, 24 or 48 hours) and confirm the operation
It should be remembered that the present instructions are generic and there may be variations depending on the broker you operate with.
Regarding its price, The company’s shares are listed at approximately US$16.48, with a conversion ratio of 2 to 1. That is, 2 Cedears are needed to obtain an original action. As for the Cedears pricethis is approximately $8,887.
What are the differences between shares and Cedears?
The main difference between the cedars and the Actionsis that the latter represent a percentage of participation in the financial assets of a company, specifically a specific percentage of its share capital.
In other words, a action It is a document that reflects a participation percentage on the property of a company.
These give you certain rights to their ownerssuch as, for example, the possibility of participating in shareholders meetings, in which the degree of influence will depend on the percentage of shares owned. You also have the right to receive dividends, among other benefits.
On the other hand, in the case of cedars, these are a fraction of said action, applying only to foreign assets.
Cedears give the investor the same rights as shares
For example, if a company has 100 shares and there is a Cedear corresponding to that action with a 2 to 1 ratioone share of that company will be equivalent to 1% of your capital, while a Cedear will be 0m5%, since 2 Cedears are needed to get a full action.
This phenomenon is due to the high inflation and devaluation of the Argentine peso in recent decades, where the prices of some stocks became too high for the average investor. If the relationship were 1 to 1, many investors would be excluded or would not be able to diversify their investments.
However, it is important to note that the cedars maintain the same rights as shares, such as the possibility of attending meetings shareholders meetings and receive dividends.
Likewise, if desired, They can be exchanged for the “original shares” as long as the previously mentioned relationship is completed.
For example, in the case of Barrick Goldif or if the number must be a multiple of 2. If we hypothetically have 21 Cedears, can be exchanged for 10 shares and 1 Cedear would be left over, since shares cannot be changed “in fractions.”
How to save on gold in Argentina?
In case you simply want invest in gold, you can do it in three ways. One is acquiring the metal itself, whether in a jewelry store or bank. This option allows you to have the mineral physically and sell it whenever you want by cash or transfer.
Purchasing gold at a jewelry store is one of the most popular options for investing in this metal.
Another option is the acquisition of “digital gold“. This is obtained investing in assets as cryptocurrencies supported or gold exchange traded funds. These alternatives become a most accessible way to invest in this metal, in addition to having a smaller spread between buying and selling.
However, it is important to keep in mind that the spread can vary significantly, especially in the case of physical gold that is not found in bullionas with jewelry
Finally, you can invest indirectly, for example, buying shares of companies related in the mining sector, such as the aforementioned Barrick Gold. This way, you can participate in the gold market without having to possess the metal physically.
In conclusion, whenever you go to invest money You must analyze the risks and characteristics of each asset, taking into account your financial goals and risk toleranceso advise you with experts on the subject (for example, in the case of Cedar Gold with financial advisors specialized in Cedears) to make the best decision.
