Mailbag (precious metals, the loonie, transferring money, moving to another province)

Each month, we select a handful of questions that were asked by clients or soon-to-be clients. We like to post our answers online because others may have that same question as well. Here are a few of the things we were asked about most recently.

Question from Ontario: Do you invest in gold and silver?

Yes, we do. However, gold’s price movements are inconsistent. It moves at different times for different reasons. Nevertheless, in our January 18, 2024, blog “Gold Stocks Will Shine Later This Year”, we noted that gold tends to rise most consistently after the Federal Reserve cuts rates following a hiking cycle. Knowing this would likely happen in late 2024 (it ended up being September), we invested in Franco-Nevada. We also own a gold and copper company with a large undeveloped asset in the Yukon.

Question from Caledon: Is it hard to transfer an employer-sponsored RSP?

Not at all. At retirement or when you change employers, just send us your latest portfolio statement, and we’ll handle the rest. We fill out a simple one-page form and send it to you via DocuSign for electronic signing. Funds usually arrive within a couple of weeks at our custodian, National Bank Independent Network.

Question from Hamilton: What do you think about the loonie?

We still believe the $0.69 USD loonie from January 30th was close to the bottom. That day, we wrote “Our Loonie Market” blog outlining our view.

Last week, former Bank of Canada governor Stephen Poloz spoke at the Canadian Club, noting that tariffs could lead to a 5% permanent GDP loss, a weaker loonie, and a worse outcome if Canada retaliates. He also highlighted that removing interprovincial trade barriers could boost GDP by 4-7%.

If tariffs come, we expect emergency measures to improve interprovincial trade, helping offset any sharp currency decline.

Question from Etobicoke: Can you ensure I never own stock in a company where a household member works?

Yes. Every year, we update your paperwork and ask if there are any companies or sectors you want to avoid. Those go on a restriction list, which we check before making trades.

Question from Western Canada: We’re moving to another province—can we still work with you?

Yes. Thanks to NI 31-103’s mobility exemption, if you move to a province where we’re not registered, we can still work with you. There are a few disclosures required on our end, and there’s a cap on how many clients we can work with upon relocating to another province. But it’s straightforward. Even if the exemption didn’t exist, we’d get registered in any province where there is a client that wants to work with us.

-written by Jeff Pollock