An Exclusive Interview With Gold Expert Dave Cole
Over the course of my 30 years in the world of stocks and markets I’ve met a lot of interesting and insightful people.
One of the most interesting people I’ve developed a working relationship with is Dave Cole, the president and CEO of EMX Royalty Corp.
EMX is a long-standing and successful company that conducts exploration and royalty generation in the precious metals and minerals mining industries. Dave has over 30 years of experience and today he lends his latest insights in an exclusive interview.
Let’s get started…
Mike Burnick: Hello, everyone, and welcome. I have a very special guest joining me today. It’s Dave Cole, the president and CEO of EMX Royalty Corp. Dave, thanks for spending some time with us today.
David Cole: My pleasure, Mike. Happy to be here.
Mike Burnick: Today I want to talk big picture with you for a second. As a 30-plus-year veteran in precious metals, you’ve certainly seen it all by now, and I want to get your thoughts on gold today in general.
How does gold fit into the average investor’s portfolio right now, considering the year’s volatility in markets?
David Cole: Great question, Mike. Gold can be accumulated as physical metal. But it also can be accumulated as gold equities or other gold securities, including royalty exposure, production companies, gold explorers and gold royalty companies.
As far as exposure, some investment professionals talk about one or 2% of your portfolio being exposed to precious metals. Others talk about five or 10% being exposed to precious metals. How you allocate your position depends on your risk aversion.
Mike Burnick: Thanks, Dave, that’s succinctly well put. On a related note, we’ve recently seen some big names on Wall Street, like Jim Rogers and John Paulson for instance, start loading up on gold and gold-exposed assets like mining stocks.
Why do you think that is?
David Cole: Well, those are very astute investment professionals managing large quantities of money, and they want to increase the utility of their portfolio, i.e., the return-to-risk ratio. You can do that by exposing yourself to countercyclical assets such as gold equities and physical gold.
Mike Burnick: Right. But gold can be pretty expensive for the average investor — at nearly $1,465 an ounce, it’s costly to purchase any sort of large stake. That said, are there ways to buy into the upside and gold without paying a lot of money upfront? I’m thinking of smaller-cap mining shares, for example.
David Cole: You know, smaller-cap exploration and mining companies are very volatile. Huge amounts of money can be made, but you can also lose a lot as well.
It’s not for the faint of heart.
I will point out — and this might sound a little bit self-serving and I apologize, but it’s just the truth — when you look at the mathematics over the long haul, gold royalty companies led by the likes of companies like Franco-Nevada (NYSE: FNV) have outperformed gold producers and even outperformed junior mining companies very nicely.
That’s one segment of the gold sector I would always recommend folks look at.
Mike Burnick: Yeah, that’s a great point. The royalty companies, yours included, have performed very well. And they hold up especially well when gold’s in a trading range like it is right now.
David Cole: They sure do, Mike.
Mike Burnick: And there you have it, folks. If you’re looking for a new way to invest in gold, you’re going to want to keep a very close eye on gold royalty companies like Franco-Nevada and EMX Royalty.
And you can find out a lot more about the company including the latest press releases as you just mentioned at Emxroyalty.com. Of course, I’m keeping a close eye on the company too and will keep you abreast of developments.
Dave, thank you so much for your time today.
David Cole: Happy to talk to you, Mike. I’m always happy to talk about my passion.
Mike Burnick: Absolutely. We’ll do this again soon.
Here’s to growing your wealth,