Matt Badiali, the founder of Real Wealth Strategist, says that now is a great time to buy and hold the stocks of mining companies. He advised his readers that if you’re an investor who has yet to purchase mining stocks you are behind the eight ball. He says that gold hit a value of $1,051 an ounce on December 17, 2015. Investors weren’t very happy with this because it was the lowest price in the past five years. Gold mining companies had their stocks hit hard during this time as their profits fell by a significant amount.
He says that investing in gold can get a bum rap from some quarters. Matt Badiali says that some investors think it’s too risky a thing to invest in with worries about mines shutting down their operations. Another issue is the gold mines tend to exist in volatile parts of the world. Those who are willing to do it, though, can make quite a windfall he says. He says that more and more people are willing to add gold to their portfolios nowadays, though, despite the risks.
Gold is a great way to diversify an investor’s portfolio, he says. It helps protect investors against the stock markets ups and downs. As gold is a limited commodity he says that investors in it can gain from the inflation that results from the global economy continuing its expansion.
The value of gold isn’t correlated to the stock market. This is the main reason why gold is a good investment to make. If an investor only puts their money in the stock market they are taking on too much risk and they will lose money when the markets take a deep dive south. Matt Badiali also says that after the price of gold hit its lows the gold mining firms restructured and are now operating more leanly than ever, making people who invest in them wealthy. To know more about him click here.
Matt Badiali has an educational and professional background in the earth sciences including geology. He has worked as both a geologist and financial analyst during his career and uses this unique background to advise investors who want to put their money in natural resources.