There are a lot of managers who are against investing in gold. The precious metal has not been the best performing asset. The yellow metal had been falling for several years and bottomed out in December 2015. It has climbed back over the past few years, but most participants in the financial markets are not convinced that it is a great investment. While most people remain pessimistic about gold, Matt Badiali feels that the gold market is improving, and now is the time to position in the gold miners. Mr. Badiali is known for making very profitable calls for resource stocks. He provides valuable insights about recent events surrounding commodities in his investment newsletter the Real Wealth Strategist.
Matt predicting on a future with higher gold prices and feels that the miners are the best way to gain exposure to the metal. Gold prices had done rather well until 2011. Since then, all the commodities have been in somewhat of a slump. Management in the top gold corporations had only seen a bright future for gold and they added a lot of debt on the company balance sheets. When gold prices began to disappoint, these companies began to go into survival mode and slashed much of their costs. The focus for most gold miners has been to eliminate as much debt as possible and keep operating costs low.
Although gold is still not near its all-time highs, Matt Badiali feels that gold will continue to trend higher. According to Matt analysis, the gold miners have done very well cutting costs and keeping them down. The largest miners are seeing profits again, and they are showing promising operation results. While Matt Badiali sees gold in an uptrend, he feels that people are going to get better investment results if they invest in the gold mining shares over the metal itself. This is because the miners offer an investor leverage to the metal. Matt Badiali says, gold prices are going to continue to rise from these levels, but he feels that gold will really skyrocket after inflation really picks up in the years ahead.