8 www.resourceworld.com
D E C E M B E R / J A N U A R Y 2 0 1 5
$1,185/oz and silver $16.09/oz. No doubt
precious metals bulls will be hoping that
physical demand from the developing
world, particularly from Asia, will kick in
as a support.
It is also worth noting that while QE
closes in the US, the European Central
Bank's "QE-Lite" could be broadened
in scope, over the coming months, as
efforts are made to try and jump-start the
Eurozone's listless economy. Other sup-
port might come from the shuttering of
marginal operations, although the effect
of this is likely to be felt over the longer
term and might not have the price support
some are hoping for. Of course, tempo-
rary moves higher on safe-haven buying
can always occur, either on a black swan
event or on any serious deterioration
in eastern Ukraine, the Middle East, or
Ebola-affected West Africa.
avoiding the ShoalS
In these choppy waters, a contrarian
should seek entry and value by selecting
his or her picks based on a careful analysis
of a company's performance and prospects,
Rick Rule stressed. Size alone should not
be viewed as a measure of competence or
possible success in the future. "A company
shouldn't be rewarded simply for size …
We believe companies should be efficient
and making money," Rule said. "In addi-
tion, we think the cash they generate
should be sufficient to satisfy their debt."
"Premier candidates are names like
Franco Nevada [FNV-TSX, NYSE], Silver
Wheaton [SLW-TSX, NYSE] and Royal
Gold [RGL-TSX; RGLD-NASDAQ]," Rule
said when speculating on streaming and
royalties companies. "We also like those
mining companies that have paid attention
to corporate efficiency; those names would
include Eldorado Gold [ELD-TSX; EGO-
NYSE], Goldcorp [G-TSX; GG-NYSE] and
Rand Gold [RRS-LSE; GOLD-NASDAQ]."
Rule remains bullish on platinum and
palladium, highlighting the industrial
application of these metals in auto catalytic
converters, adding that there is between
$150 to $200 worth of platinum and palla-
dium per new vehicle in the US. Potential
For business in Hinton
the sky's the limit!
Commute with
other trailblazers
780 865 6004 www.venturehinton.ca venture@hinton.ca
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