Gold investors have not had much to celebrate. Like most of the commodities, gold started to fall in price after 2011. Gold hit a low of around $1050 in December of 2015. Although the yellow metal has risen from its lows, most investors have been avoiding gold. While sentiment for the metal is rather poor, Matt Badiali is one renowned financial guru who feels that the gold market is recovering, and investors should position themselves now before the gold price really starts to move. Mr. Badiali has a degree in geology and understands the nature of commodities. His investment recommendations are found in his newsletter the Real Wealth Strategist.
Many of his subscribers have made money just by following his investment advice. To capitalize on a recovering gold price, he believes that investors should be building positions in high-quality gold mining companies. The Gold miners had been losing money when gold prices started falling. Many gold companies felt that gold was going to much higher price levels. They took on more debt, thinking the higher gold prices would not hurt their bottom line. However, lower gold prices forced the major gold miners to focus on paying off the enormous debt that they had piled on. The major gold miners cut back heavily on areas such as exploration. Matt Badiali believes that the gold market has been in a slow uptrend since December of 2015.
The sentiment for the metal is at historic lows. Many financial experts are going to advise people to not place their money in any gold related investments, which they see as too risky. However, with gold prices rising, Matt Badiali feels that investors can utilize the gold miners to make explosive gains as the price of gold continues to climb. Newmont Mining and Goldcorp have had positive results recently, and if the gold prices continue to rise, their results will be substantially better. According to Matt Badiali, many of these companies have become more efficient and have drastically cut their operating costs. He feels that they are bargains right now and investors should buy them while they are cheap.