TGR: In 2008, you told your investors to sell everything. Is that still your position?
PvE: The end of 2007 and the beginning of 2008 was the top of the market for most metals and certainly for mineral exploration stocks. That was the time to sell everything. Now we’re very close to the bottom of the market. It could be a long and drawn-out bottom but, nonetheless, I think that we’re close to a bottom.
This makes it a very good time to be accumulating mineral exploration assets or junior exploration companies. It assumes an investor has the patience and financial ability to wait for the next bull market and stay with the trades. Remember that junior exploration companies don’t generate revenue. If the bear market is protracted, these companies will need several rounds of financings in order to stay alive.
TGR: You also invest in silver, base metals and energy. Are some of these sectors doing better than others?
PvE: Copper, like gold, is very expensive. So is silver. The other base metals, such as aluminum, zinc, lead and nickel, are much more reasonably priced. Oil is also very reasonably priced at $85/barrel. I see less systemic risk in those sectors than I see in gold, silver or copper.
TGR: What specific companies do you like in those sectors?
PvE: I have recently acquired additional shares of both Miranda Gold Corp. (MAD:TSX.V) and Evrim Resources Corp. (EVM:TSX.V). I’m on the board of both of those companies and so I am not at all independent, or impartial.