There are a number of good reasons to have part of your financial portfolio invested in gold.It’s a hedge against inflation,for one. Two,its correlation with the stock market is pretty low. It’s a great way to diversify your portfolio with a commodity that can increase in value by quite a bit.However, geologist and financial advisor Matt Badiali says what’s even better to invest in is the companies that mine gold. This is especially true now as these companies had to get very lean when the value of gold tanked to $1050 in 2015, just below the amount of money it cost them to extract this precious metal from the earth and rock it’s buried in.
Having formerly taught geology at the University of North Carolina, he says that the executives running gold mining firms saw that gold prices were subject to change. They restructured while the value of gold was low, Matt Badiali says, and paid off their debts. They are now poised to make huge amounts of money as the value of gold has recovered and they are getting more gold mines in operation. He says that the gold mining firms will see their stocks increase by even more than how much gold itself will be going up by.Some of the gold mining companies Matt Badiali is closely monitoring include Newmont, Agnico Eagle, and Goldcorp.
These companies have already had some pretty solid gains and they are going to have further success due to their making wiser decisions than they have in the past.Many people see the value of commodities and feel like they’re pretty arbitrary. You need to be both a financial expert and scientist like Matt Badiali to truly understand this area of investing. Even better is that he can break down the complex science and financial matters in a way that his readers can really understand.He writes the Real Wealth Strategist newsletter. Matt Badiali also speaks at seminars and other events where he explains investing in commodities and what the current trends are. His business goal is to inform people about natural resource investing so that they can achieve financial independence.