Investment guru Matt Badiali recently wrote that now is the time to go long on gold miner’s stock. Many experienced expert investors feel that investing in gold is way too risky, especially when they feel that mines can and do shut down or fail. Another big difficulty is that many gold mines are in very unstable parts of the world, adding to the risk. Other investors know, though, that they can make a windfall in gold mining stock and so are adding these companies to their portfolios in 2018.Matt Badiali advises that gold always has a minimum cost it takes to get it out of the ground.
This called the “all-in-one” cost and it is the lowest value that an ounce of gold can hit. This cost is also what a company needs to stay in business. In 2015, when gold hit a low of $1050, that “all-in-one” cost was just $1 more than that.Gold is a great way to diversify a business portfolio. It’s not very correlated to the stock market which is important because many other asset classes are. It can help smooth out a portfolio from the stock markets ups and downs. Investors who don’t invest in gold can see their portfolio value drop by a huge amount if the global stock market enters a bear market.
When the value of gold hit its low, gold mining firms around the world tightened their belts and restructured their businesses.Matt Badiali says that investors are now going to reap the awards of them having done so as gold is set to shoot up in value. These companies will be very profitable and will make their investors rich.He has been trained as both a financial analyst and as a geologist. This background gives him the knowledge he needs to completely understand this precious metal and other commodities. When Matt Badiali analyzes a gold company he doesn’t look at numbers but determines how long it takes them to drill a hole as the faster they do it the more productive the company is.