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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Since early 2023, I de-risked my general asset allocation to 30% equity. 30% ultra-short-term corp bonds, 30% MMF. The rest is mostly physical gold (PHYS), with a tiny bit of silver exposure. I am wondering about starting a small position in oil such as CPG or WCP. My other interest is also Sprott Physical Uranium as I have a tiny position in CCO which also did well. Any thoughts on which one is a better story, Uranium or oil?
Read Answer Asked by Ford on November 02, 2023
Q: I read an article recently that talks about the validity of ETF's. Can you make your comments about this!

Terms are that, each share of an ETF is an IOU.

As an example what happens behind the scenes when an ETF buys gold?

The actual metal purchased is stored by a custodian such as a major bank like JP Morgan or HSBC – yes, the same banks that have been investigated for silver and gold manipulation many times in the past.
But what you may not know is that the value of each share you own, or more specifically, the share-to-metal ratio, actually decreases the longer you hold it.

For example, the fund that manages the ETF must sell gold to pay for expenses, reducing the amount of gold tied to each share.
That's one of the reasons ETFs should NEVER be considered a long-term investment.
In other words, ETFs are not the way to go if you're looking to gold as a store of value or as an insurance policy against fiat currencies.

The same goes for Bitcoin ETFs.
Over time, the ETF fund will sell some of its Bitcoin to cover operating costs and management fees. As a result, an investor's unit will gradually hold a slightly smaller amount of Bitcoin than their initial purchase.

I would appreciate receiving your comments about this information!
Thanks.
Read Answer Asked by Terry on July 25, 2023
Q: Gold in general due to the massive Fed and provincial deficits in Canada

Hi Peter and team
even before Covid, the Fed govt was running a substantial deficit in good time
(comparatively)
the Fed deficit for the next few years (1-5) would be enormous no matter which party takes power
with the debt, for an average investor, I do own gold stocks and ETF
today at 11:30 Wed , one speaker on BNN felt that investors are not keen on buying gold (now off the peak season), he does not like bitcoin either

From your perspective, this could be a good time to buy some more quality gold
stocks and ETF (I know the names that your services recommend) ; I wonder
if you feel that this would be a prudent move, (up to 5 plus percent in ones portfolio)
or there is another sector one could buy as an insurance of the massive printing of our money due to the huge deficits (the US called it Quantitative easing)

looking forward to hear your expert opinion,
thanks

Michael (do own some gold stocks and the ETF for gold)
Read Answer Asked by Michael on April 01, 2021
Q: Hello,
Would appreciate your suggestions on a couple of good low fee ETF's for commodities
Thanks
Darryl
Read Answer Asked by Darryl on March 04, 2021
Q: Hi Group Ronald asked a question on Physical gold bullion within the question was a statement that paper gold and silver will become worthless? you appeared to agree with this . Did I read that correctly should we only hold gold bullion to be 100% safe please explain I own the following AEM, FNV, MAG,GDXJ, GDX, WDO, EQX, SIL, USA please advise to hold or sell /convert to gold bullion/physical gold only Thanks
Read Answer Asked by Terence on December 02, 2020
Q: I read this is an article from Matterhorn Asset Management:

"Your best friend and protector in this ignominious company of bubble assets and falling currencies are precious metals in the form of physical gold and silver.

But please ignore PAPER gold and silver (including ETFs) which one day will be worthless."

I hold both both of these funds in approximately equal percentages. Should holding my precious metals via Sprott alleviate any concerns I should have about the investment becoming "worthless"?
Read Answer Asked by Ronald on December 02, 2020
Q: I have been reading that given the current situation one should have about 5% or so in gold. I would be interested in your recommendation on:
1. This recommendation
2. Which of the above(s) would you buy or other?
Thanks again.
Read Answer Asked by Danny-boy on November 27, 2020
Q: I bought some FNV last year and exited my position in April 2020 (too soon but still a double). I am thinking of returning to gold as I now have none (and feel uncomfortable with none).
a) Is this a decent time to return?
b) Should I return to FNV now that it has dropped back from its high?
c) Or should I choose one of GLD:US, IAU:US or SGOL:US and if so which do you prefer?
Thanks for your help.
Read Answer Asked by Paul on October 05, 2020
Q: Looking to add to my gold exposure (currently a small position in GLD). Can you let me know your preferred choice for a:
1. Gold ETF
2. Gold Miner/Producer
3. Gold explorer
4. Gold - high risk/high opportunity
5. Gold...? something alternative here, perhaps like GoldMoney

Thx.

C.
Read Answer Asked by Cameron on August 25, 2020