As promised, here are the questions that we did not get to cover during the Q&A portion of our webinar on Gold As Your Market Hedge due to time constraints. Thanks again for joining us and for sending over your questions for the speakers; a lot of attendees shared the same questions so it was very helpful to go through them together.
And if you missed our webcast with AGF Investments and Canaccord Genuity, you may find the recording here.
1) Can you speak on the gold silver ratio? why hasn't silver caught up yet? What would be the signs we as investors can see pointing to silver rising?
Jaime: Investors have to be patient for the price to pick up, a break above $22 would be a good signal that the ratio is correcting, until then buy right and sit tight. I recommend a 30% - 40% allocation to silver companies.
2) For someone looking to add bullion to their investments, how would you recommend one do that? Any sites in particular?
Jaime: Add coins either for mnemonic value or minted coins, Sprott Money in Canada or a good American bullion dealer. Expect to pay a premium as there is a break between the paper price and the physical price.
3) I am looking at investing in gold royalty companies. What criteria would you use to evaluate them?
Jaime: Good management and the assets they hold would be the starting criteria for choosing royalty companies. Own an already built one and an up and comer for more growth.
4) The talk focused on gold, but do you see copper recovering anytime soon or not for a long time?
Jaime: Copper will signal when the global economy start to pickup, wait for a break above $3.
5) Are PE ratios a make it or break it, in your opinion, when evaluating producers?
Jaime: I would not worry about P/Es on these companies as investor participation is so low in the sector, I would accumulate until the HUI gets above 500, that will signal that investor participation has changed. One will benefit if you can add good companies at these cheap prices and wait.
6) How are exploration companies in South America doing vs Mexico based exploration companies? Do you have a preferred jurisdiction between the two or are your picks company and asset specific?
Jaime: I'm cautious about Mexico's politics but it I still feel that it's a great jurisdiction, the only place I'm concerned is in Bolivia, otherwise Latin America I'm good to go.