At this year’s Sprott Natural Resources Symposium, the Investing News Network caught up with Andy Schectman, president of Miles Franklin.
Speaking about the current state of the market, Schectman shared his thoughts on how to approach this season.
“I think you accumulate precious metals as often as you can. And if it’s subsidized and inexpensive, it makes it that much more attractive,” Schectman said.
He also added that when investors buy bullion they should “take a minute to see who you’re working with. It’s a whole lot better than saving a $1 or $2 on a gold coin or 50 cents on a silver coin to work with the company that will deliver your metal.”
For new investors, he suggested they should stick with American and Canadian mint products.
Watch the video above or read the transcript below to learn more about Schectman thoughts on precious metals. You can also click here to view our full Sprott 2018 playlist on YouTube.
INN: We’re here at this Sprott show in Vancouver. How are you finding the event so far?
Andy Schectman: It’s the best show in the whole year’s calendar. It’s really the only one that I circle every single year. It’s the best to the best. Rick Rule, who runs the show, personally vets everyone. That’s really important, a lot of the shows that I’ll go to. It’s more long lines of who can pay to come and have a booth and exhibit. It’s the antithesis of that here, it’s the best and the brightest and people who have good reputation. So, aside from the people exhibiting, the people here, the quality of the attendees are as good as you’ll ever find. If your listeners and viewers are wondering what show to pick out for next year, this is the only one that I circle, for sure.
INN: In the current state of the market, it’s a bit slow and it’s summer, is it still a good time to invest in bullion?
AS: You know, to me, investing in bullion, I typically take the work investment out when I think of bullion. I would be disingenuous if I wasn’t keenly aware– if I said I wasn’t keenly aware about what the prices are doing, to me, gold and silver are wealth. Especially in times of uncertainty, it’s that much more important. And, you know, if you can buy wealth on sale, if you can buy inexpensively, and just about every metric, it’s undervalues. So, yes, I do believe it is. And I think you accumulate precious metals as often as you can. And if it’s subsidized and inexpensive, it makes it that much more attractive. Absolutely.
INN: For new investors that might be wanting, let’s not say invest, but buy bullion, what would you say it’s the best approach?
AS: Sure, absolutely. First of all, it’s important to know that it’s a federally non-regulated industry. And somewhat of a Wild West. And I can’t state how important that is. My home state, the state of Minnesota, is the only state in America that regulates the precious metals industry. And as such, we are behold into the Commission of Commerce with background checks of all our employees, and continuing education in a compliance that no one else in America has to abide by.
The significance of that, it’s pretty significant, it’s few fold. Number one, I don’t know of any companies that have taken the time outside of Minnesota to register in the state. They’re just more or less boycotting Minnesota so they don’t have to be subservient to those regulations. But number two, in the last four years, three of the biggest companies in America, online retailers, have gone bankrupt, defunct. Their presidents and owners are in prison, and they have stolen accumulative north of $150 million that will never be recaptured. Just last year, it was Northwest Territorial Mint, they were the biggest online. They had a huge presence, always inexpensive; $25 million stolen from 3,000 clients, and their owners are in prison.
So to me, the first thing you do is due diligence upon the company whom you’re working with. If I could bet myself on the back aside for our Minnesota regulations, we’ve been in business for 29 years. We’ve done north of $5 billion in sales. We have never had a customer complaint, not one. You can spend all day online looking for one, you won’t find one. To me, that piece of mind is worth something and should carry a value. There are lots of good companies out there. The morale of the story is really take a minute to see whom you’re working with. Check the reputation. Check the Better Business Bureau. Do a little digging. It’s a whole lot better than saving a $1 or $2 on a gold coin or 50 cents on a silver coin to work with the company that will deliver your metal.
And then secondly, for new investors, people who are just getting into this arena, stick with American and Canadian mint products. That’s for this side of the pond, it is– I guess, an analogy will be Pepsi and Coke. It can’t go wrong. They’re widely recognized. They’re widely sought after. They’re very liquid. They’re non-subjective. It can’t get hurt by brand new minted US Eagles and Canadian Maple Leafs. Can’t go wrong; both gold, silver or platinum.
INN: This year, is there a particular precious metal that you see as the most exciting? Why?
AS: Yes. So, it’s kind of two-fold. Silver and platinum, to me, are amongst the two most undervalued assets on the planet. If I look at silver, to me, I see a metal that’s really gotten beaten down. But if you take a step back and take a look at what JP Morgan is doing, JP Morgan is the most sophisticated, well-funded, well-informed, conglomerative …read more
From:: Investing News Network