Geologist Matt Badiali Turns Positive on Gold Returns
Writer and investment guru Matt Badiali has recently been urging people to get into gold mining stocks. He says now is the time to go long on this precious metal as he expects great performance out of it for the foreseeable future. It was on December 17, 2015, that this precious metal hit $1,051 per ounce. At the time investor were very disappointed because this marked a five year low.
Matt Badiali says that investing in gold can get a bum rap. Many see it as overly risky, especially when they see gold mines being shut down when gold drops in value. Another grave concern of investors it that gold mines are primarily in nations experiencing a lot of troubles including civil wars. Despite these issues, he says many investors are making a windfall by investing in gold and he thinks more will do so in the future.
He says that gold is always going to have a minimum cost. This amount is what gold mining companies need in order to continue to exist. If the value of gold drops below this number for any sustained period than gold miners will go out of business, the supply of gold will decrease, and this will push the value of gold per ounce up.
He also likes gold because it’s not very correlated to stocks or bonds. Matt Badiali says this makes investing in it a great way to diversify a portfolio. He says investors who don’t diversify in this way can experience huge losses when a bear market emerges.
In 2015, gold mining companies restructured to reduce costs or they went out of business. They are now very streamlined businesses set to make their stockholders a lot of money. He thinks they will soon be making their investors rich.
Matt Badiali was trained as a geologist and financial analyst. He studies gold and other commodities so that he can know when to invest in them and let his readers know likewise. He says one way he picks who to invest in when it comes to gold is how fast the company can drill holes. The faster the hole drilling the faster the production.
Tags: investment guru