Wheaton Precious Metals (WPM.TO)

Prefers FNV-T. There are some questions about the main pieces within SLW. Wait until the end of December and if nothing happens he will be very nervous about the next 6 months.

The peak period of strength for silver starts anywhere from January all the way through to about April. If you own, he would suggest you take profits before the quarterly futures expiration in March, so you are looking from January to mid March for silver. Look for an entry point more into December. However, the chart is showing lower lows and lower highs and is trading significantly below moving averages. You want to see improving relative performances.

Growing market share, diversifying somewhat. But they are a slave to what is going on with the underlying commodity prices. Buy next quarter when tapering kicks in.

A royalty company so you are making a call on Silver. Do you think silver has bottomed? This is a nice way to play silver without any operating risk. He owns G-T. maybe it is time to step out and take the operating risk.

$25.15 model price, 9.8% positive differential. He thinks it will come back to $19.65 and wants to see if that will hold and if this thing could go a whole level lower. A lot of these metals are under incredible selling pressure. It is on his radar. Wait for lower prices.

Good way to play silver and gold. Short to medium term trade. But stocks need to start to fail here. The improvement in the Syrian situation is a bit negative for silver and gold.

Royalty and streaming – silver. They pay a fixed price for silver and are not exposed to cost inflation. Great growth profile, growing cash flow and dividend. 50% of silver is industrial use.

Dependent on the price of silver, but at the same time it is a royalty company with fixed costs of roughly $4.06 an ounce. It will be profitable, but how profitable will be totally dependent on how high silver goes. Would prefer this one to owning silver itself. Thinks there is some growth here over time. Well managed.

Investing in gold/silver producing stocks has been a very, very challenging environment. Thinks that a lot of investors have just given up. Have been horrible performers because they have not been able to manage their costs and it has been very difficult to grow production. They are also often operating in politically unstable countries. Royalty plays, like this one, have been the best performing of the poorly performing lot. Generally takes a long time for a stock to recycle its way through with a lot of resistance on the way up. Because of rising interest rates and an anticipated stronger global economy, gold and silver will continue to be problematic investments.

When gold and silver broke down, he changed his view. If gold can get above 1525 then things will be happening, but he doesn’t think that will happen.

Owns it only in aggressive portfolios. They are smart people but there is an interesting little bounce here. Playing it for a short term trade. As soon as it turns he would get out.

Is a call on the price of silver. Has a similar seasonality to gold. Prefers Franco FNV-T.

The only concern he has with this is that they lent a lot of money to Barrick (ABX-T) for Pasqualama to do the uptake and he is not sure if Barrick is going to be able to deliver on this project which will create problems on the balance sheet. However, if we get to see a nice increase in silver prices, this company will follow along because the cost of their production is in the $5 range.

This one depends on your outlook on the precious metal space. He has not been constructive on this area. Very strong management team and excellent leverage to the commodity and a great business model. They own a bunch of royalty streams so they are not exposed to the cost of getting the commodity out.

$31.05 but he has his EBV lines indicating lower prices. Expects bounce at $19.42. Will probably have a consolidation of the price around $14.07.