Investment Q&A

Q: What is a derivative in the financial world? I have heard that derivative values issued worldwide are enormous, in gold well over 100 times the value of all physical gold existing. Are we facing a bank problem with these entities that will repeat the subprime mess again?
Mark Stewart

Q: What are you thoughts on buying uranium participation for a 5 year hold.

Q: Hi,

I have recently thrown in the towel on Goldcorp, and need to replace for gold exposure. I read this morning you have done the same and replaced with AEM. Can you offer some guidance as to why you selected AEM please. Dejardins recently downgraded to a hold with a target lower than yesterday's close, not that I put a lot of stalk in these reviews. Would you get into AEM here? Thanks!

Eric

Q: Having been in this stk for many lean years, the recent turnaround intrigues me somewhat. I am wondering if you have any info that would account for the move up in this particular security. The other golds are not responding to the same degreee as this stock. Thank Youl.

Q: If you had to pick a gold stock that would appreciate with a rise in the price bullion, with at least a 3% dividend payout, what company would you pick?

Q: On Jan 27th, Pierre asked about buying ZJG. You suggested XGD holding larger companies primarily for safety. I am thinking of adding gold exposure and see that both ETFS have the same MER (.55%)and while XGD has a 70% exposure in N.A. ZJG is 100%.
My question is, would the smaller gold producers in ZJG have more torque to the price of gold and perhaps benefit from M&A activity? Or perhaps not.
Thanks for your great service Gord.

Q: Why not use HBU or HGU instead of AEM

Q: Would now be a good entry point for Denison? Would Cameco be better?

Q: Hi Peter and Team. I would like to sell my hudbay shares and replace them with shares in a similar company that concentrates in zinc and copper. Also a company with less debt and more insider ownership. Do you have any suggestions. Thanks.
Rob

Q: is this a good time to buy

Q: Peter and His Wonder Team
In the last few months this miner has gone from $0.53 to $1.82 which I believe outperforms the whole gold sector. I know they settled there contract with the union in the fall and they benefit from a strong USA dollar. Also they are reporting better production results...Do you think there are other reasons? What do you think of this stock going forward...any further upside?
Thanks for your consistent high quality professional expertise!
Dr.Ernest Rivait

Q: Hi Peter and team ! I hold a little bit of capstone mining company, and even though the commodities have fallen on hard times, I was wondering if Capstone's balance sheets warrant me holding on to it until things perk up. Thank you for all you do! Cheers, Tamara

Q: I am a long time holder of both Goldcorp and Yamana, both of which have been decimated and are now much smaller positions within my portfolio. Today you removed G from the model portfolio and replaced it with AEM. If I wanted to purchase AEM to replace some (or all) of my current gold holdings, would you recommend that I sell Goldcorp, Yamana, or both to pick up an equal weighting of AEM?

Q: Hi Guys:

what is your current opinion on Klondex

Q: What do you suggest doing with SLW? I am overweighted in it and it is down 50% from what I paid and still dropping daily. I am aware of the tax issue. I keep thinking I will sell it when it goes up some, but it doesnt seem to go up! I dont need the cash now, but I hate to see it tanking daily! Thanks for your response.

Q: Could you please tell me what is happening to Royal Gold? It is tanking while bullion is doing reasonable well. Thank you again!!

Q: Hi there

Wondering if you have any explanation why on a day like this with gold stock up (Barrick up 6% today) that Goldcorp is down. Lately it does not seem to move with other gold stocks. Are there some underlying issues?

Thanks

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