Some of the biggest names in the Canadian investment sector talk to Stockhouse about their views on the outlook for precious metals and underlying stocks.
Sprott Inc. Chairman Eric Sprott
Veteran Canadian money manager Eric Sprott believes silver will emerge as the investment opportunity of the decade and may reach US$50 an ounce before the end of 2011.
As anti-government demonstrations in Egypt sent U.S. stocks into retreat on Friday, lifting some of the selling pressure on precious metals, a Canadian money manager said he expects silver to emerge as the investment opportunity of the current decade.
Eric Sprott, the 66-year-old Chairman of Toronto-based Sprott Inc., said he is prepared to bet that silver prices will not only rebound from the recent peak of US$31.24 an ounce, they will also reach highs not seen since 1980s, when the white metal reached an all-time high of almost $50 an ounce.
U.S. Global Investors CEO Frank Holmes
When he is attending conferences in countries like India and Dubai, Frank Holmes will often take time out to buy necklaces, ear rings and other gold jewelry items.
The ceo of Texas-based U.S. Global Investors Inc. says it's a habit that stems from his belief that in a rising gold market any investment portfolio should consist of at a 10% weighting in gold, with a mix of physical gold and non-hedged gold equities (More about the equities later).
"The first rule of thumb is you buy gold jewelry for the one you love,'' he said during an interview with Stockhouse. "Then if you buy a gold stock and it goes down, you don't get into much trouble,'' he said, chuckling at the thought.
Robert McEwen, Chief Executive Officer of U.S. Gold Corp.
Robert McEwen predicted in an interview with Stockhouse that pressure on the U.S. dollar and other world currencies will send the price of gold considerably higher in the coming years. "Your readers go long on gold," he said. The former Chairman and Chief Executive of Goldcorp., says the yellow metal could be trading by US$5,000 by 2014. It means there should be more big cap gold stocks trading on the S&P 500 to meet the demands of investors.
Rick Rule, Chairman of Global Resources Investments Ltd.
Rick rule says that in spite of the junior mining sector's high risk nature, micro-cap stocks are still a good place to invest for people who are prepared to do their homework and have the courage to trust their own convictions, even when the chips are down. "It means that a business that is extraordinarily risky, is much less risky for the person who does the work,'' he said. Drilling down into financial reports and disclosure documents of small resource firms is what Rule believes he does best. It is something that he will spend more time on now that Global Resources has been swallowed by Toronto-based fund company Sprott Inc.
Wellington West Capital Markets analyst Kevin Shaw.
One of Canada's top energy sector analysts says investors should be paying more attention to companies that are active Argentina. Wellington West Capital Markets analyst Kevin Shaw sees five key reasons why investors should focus on growth prospects in the oil and gas sector. They include favourable geology, established infrastructure, an improving fiscal and geopolitical climate, and an ongoing effort to avoid an domestic energy crisis by attracting more investment capital. Shaw also said the bid to attract new investment means opportunities not only for the majors, but also for a select group of small cap firms.
Source: Stockhouse
