Personal investor Don Hansen has honed his due diligence course of over greater than 20 years of useful resource sector involvement.

Talking to the Investing Information Community, he shared his methods for evaluating gold and silver shares, together with his course of for assessing danger/reward and the way he analyzes market cap/gross margin.

Hansen additionally went by way of the questions he asks firms earlier than investing, and defined why Aya Gold & Silver (TSX:AYA,OTCQX:AYASF), a pure-play silver producer targeted on Morocco, is his favourite inventory.

He is making ready for a situation the place inflation doubtlessly stays elevated for greater than a decade.

“Proper now I see that we’re headed into a big inflationary interval that might very simply final for 10 or 15 years,” Hansen mentioned, noting that there are a number of things driving his outlook, similar to the large buildup of debt at varied totally different ranges.

“I am making an attempt to comply with that and guarantee that that is nonetheless on monitor — am I nonetheless proper about that? I am fairly certain at this level that I’m, and that we’ll begin to see a significant enchancment in gold and silver costs on account of that,” he famous.

Watch the interview above for Hansen’s ideas on the right way to conduct due diligence for gold and silver shares. It’s also possible to click on the the timestamps under to view particular components of the interview:

• 0:00 — Intro
• 0:32 — Don’s useful resource investing background
• 3:54 — Threat/reward evaluation for mining shares
• 10:00 — Perceive your personal danger tolerance
• 12:18 — Market cap/gross margin evaluation
• 17:42 — Don’s prime decide: Aya Gold & Silver
• 21:02 — Key due diligence inquiries to ask
• 28:00 — Easy methods to know when it is time to promote
• 33:22 — Outro

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.