Wednesday, 15 April 2015

Ross Beaty Interview with Sprott's Tekoa Da Silva

Transcript  - HERE
Ross Beaty has been making significant junior investments recently - see HERE

Put all that together and it’s all happening now. You know what? There are a lot of weird things that I can’t really figure how it’s going to end. But quite frankly, my salvation here, my refuge, is in precious metals. It’s in gold and silver. So I’m very bullish on gold right now. I’m particularly bullish watching what’s happening to the gold price relative to the US dollar. I’m bullish on silver because silver will follow gold. Silver has always traded with gold...........This is the end of four years of really weak markets, in the metal space and in the resources space. So a lot of investors are bruised and bloodied. We’re starting the fifth year. If the tide is going out and there is a huge macro wave -- a wave for metal prices declining, you’re probably better off to own the metal than the companies, because the companies tend to underperform the metals in a bear market. Bear markets feed on themselves. So if an investor is losing money, he’s not going to want to buy another speculative gold company or copper company. So it’s true that even in bad, bad markets, you will have some great investment successes where a company has had good exploration results or has done a really, really smart acquisition. You will have those. But typically the whole sector is going to be losing out and the best strategy then is to do what nobody does which is sell at the top. Buy at the bottom, sell at the top. That’s what you’re supposed to do. But of course nobody ever does that. It’s times like this where we’ve had four years of bear markets and I don’t know whether the bear is going to turn into a bull market in a year or two years or two days. I really don’t know when the bottom is. But I know this is not the top. We’ve had four years of terrible markets. I would say today is just a really good time to be building a portfolio of well-run junior companies. My bias is in gold because I think that gold and silver are going to outperform the other metals. But buy a portfolio of companies and really focus on a couple of things. One is the asset has to be good. You can have a genius with a crappy asset and he’s not going to make money. You can have an idiot with a phenomenal world class asset and he’s actually going to make money. The stock is going to go up. The second thing is: people are really, really important. But my first priority is to look at the asset, to look at the quality of the project that the company has............there are a lot of similarities today to what typically happens in the bottom of the bear market. There is a lot of sadness, a lot of difficulty raising money, a lot of very stressed junior companies, and very unhappy investors. That’s the nature of the beast. When things turn, the tide will come in and everybody will be happy again.

1 comment:

  1. Really great interview with some fantastic points - I'm really glad that you included the transcript with the video! Have you seen what good work Mineco have been doing recently? You should take a quick look!!