Peter Schiff: “The blue chip, or senior mining companies, are very cheap right now. They’re as cheap as I’ve ever seen them on P/E basis.”

“For people who want to get started that’s the best way to go. They should have those before they start getting more aggressive.”

“Say all you buy is some exploration plays and they don’t do very well, it might turn you off, and you won’t want to invest anymore.”

“If you start with the blue chips, you have the lowest probability of losing. And if you have a good experience, then you may want to move up the risk pyramid with some of the smaller producers.”

“Of course if you happen to time the market really well, you can make more money with some of these smaller companies, but for someone with no exposure I wouldn’t want to take the risk that they timed it wrong.”

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as “Doctor Doom” because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called “Crash Proof” and a follow-on called “The Real Crash”. He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

Source: Peter Schiff : The Blue Chip, or Senior Mining Companies, are very cheap right now