Investment Q&A

Q: It is possible the response to Ed about his proposed investment in a gold trust may have missed a part of his question.
While it is true that a declining U.S. dollar is "good" for the price of gold in nominal terms, it does in fact at mitigate any gains a CDN investor might enjoy from a gold investment assuming he is converting back to CDN dollars when he cashes out. I think that is what Ed was getting at. Gold investments from a CDN dollar point of view kind of have a built-in hedge associated with them because of the Typical inverse relationship between U.S. dollar and gold price. Of course the hedge works both ways and can mitigate losses when gold goes down. In any event, the negative correlation is not a perfect one so "real" gains can still be made in a gold investment even in CDN$.
I realize 5i knows all this but it is something that can sometimes be overlooked in discussions re commodity prices.

Q: your thoughts

Q: Hi Team, Any thoughts on why, in the last month(Dec 19 to Jan 19), BTO has declined about 35% while the sector has gone down by less than 5%. Is it more than just the Burkima Faso effects? Ed

Q: Today, the gold price was flat, but junior gold miners were down almost 5% and gold explorers were down almost 8%. Do you know why such a steep drop?

Q: I want to buy PHY.U on the TSX (in US dollars) for a position in gold. In time if gold goes up, which means the dollar will likely go down, do I just break even or am I missing something? Is this too risky a trade?

Q: what do you think about YRI? How are they financially?

Q: The FNV stock is a bit rich for my TFSA, what do you think of it's warrant?

Q: Peter and His Wonder Team
Peter you were great on BNN this week!
I am a little perplexed about the gold sector. Yesterday gold was up $17.50 yet most of the gold stocks retreated. I think this is irregular...why do you think this happened? In particular KGI was down with the rest ...and yet HMY was one of the exceptions to be up!
Respectfully...
Dr.Ernest Rivait

Q: 20 % plus move in TCK the last 2 trading sessions on heavy volume. This in a crap market. Might there be something going on or just a rally because of the low share price.

Thx Blake

Q: Is this a good environment to invest in Gold Stocks. What is your view? How would you rank these gold/silver stocks in terms of growth:
G,AEM,THO,SEA,OSK,DGC

Also which ones have a higher probability of a takeover. Thanks

Q: I am thinking of buying more gold stocks .What is your feeling
About Pershing gold us .
thanks.

Q: SWC is at a multi-year low. Given net cash, lower costs and the relative strength of the auto industry, at what point does it become 'interesting'?

Q: Hi Peter, Ryan & Team
I am interested in HBM and LUN for a three year hold.would you please reveal your thoughts on these two companies. I am mostly concerned about survivability and future prospects. Which one do you feel is the better value? Thank you.

Q: Hello 5i! I have a small position in Fortuna Silver Mines (stock is down 30% and overall sector weightings is 10% of portfolio). I have concerns that the stock may not survive the downturn. What are your thoughts on FVI today? Should I hold, add or sell and buy something else within the sector? I am a long term investor, I can handle risk and have some cash at hand. Thanks!

Q: Hi there

I have been very patient with Argonaut through about 3 years keeping it for insurance purposes as it steadily dropped. I bought it in part because it had almost no debt. Last week it popped up to 1.24, thought of unloading it, but now it is down to below a dollar. Wondering why it plunged much more than other gold stocks. Is there anything I missed and what is your opinion of it. The only other gold stock I hold is Goldcorp and my total weighting in gold is below 3%.

Much thanks

Q: Hi,

I know you mentioned Teck wasn't quite a buy yet back in December, but the stock has since been cut in half (again). Do you think it's a buy for the riskier part of a portfolio given it's strong near term liquidity, debt maturity profile (2017 onwards) and ability to raise cash via asset sales if it must.

The share price fall seems a bit overdone at these levels, but welcome your views.

Q: I do not own any gold stocks. Rather than trying to pick two or three for 5 percent of my portfolio what etf woukd
you recommend to give me diversification and less risk.

Q: Hello, Any reason why BTO is crashing today. Is this a buying opportunity or is there something going on M&A etc.
Thanks

Q: In a recent response to Carla on purchasing gold stocks, you suggested the purchase of 3 stocks to fill her position. That would suggest to me that I would require 60 stocks for a portfolio. I am trying to square this answer with earlier advice that portfolios need only have 20 - 25 names. Did you suggest 3 names because gold is a particularly volatile sector, or that current market conditions require much more diversification than "normal" or is there perhaps some other reason.

Apprciate your insight.

Paul F.

Q: I don't own any gold stocks but am thinking of adding them as insurance. I would buy a bit each month for the next few months. Goldcorp seems to be the worst of them performance wise? Would you still suggest this is the one I buy or would you prefer Agnico or FNV? I was thinking about putting 5% of my portfolio in it. Which stocks should I choose and what percentage of this 5% should each be? Or is one enough? Is gold better in a TFSA, RRSP or non-registered?