Investment guru and author Matt Badiali recently said, “If you don’t own gold mining stocks yet, it’s time to go long. Here’s why…” The following article offers a detailed explanation why now is the time to invest in gold mining stocks.
According to Matt Badiali, the price of gold went as high as $1,051 per ounce on December 17, 2015. Investors felt ruffled because the value had dropped to the lowest price seen during the previous five years. The price was even lower than the bottom valuation attributed to the majority of gold mining corporations.
Gold investments also can sometimes get a bad reputation. They are often wrongly perceived as overly risky, particularly when investors begin to consider the effects of mines shutting down or failing. Meanwhile, most mines are situated on less-than-stable areas of the world, adding to the anxiety of some investors. So what is it that makes investing in gold such an effective way to make a windfall? And why are so many investors are adding gold to their portfolios in 2018, and even more projected for the future?
Gold and related materials are commodities offering a balance between energy costs, iron, concrete and water. Gold always has a minimum cost. It does not matter whether the material is the finest quality or available via a quick mining effort. The “all-in-one” sustaining cost represents the lowest price per ounce. This cost constitutes the amount of money the corporation needs in order to exist.
Gold is also an excellent way for investors to diversify their portfolio in a distinctly powerful way. This can come in handy during the market’s fluctuations and changes, insulating investors against shifts and patterns like these. Meanwhile, the limited supply of gold worldwide means that investors have the opportunity to gain from any inflation that comes as a result of increased global economic expansion.
Because precious metal investments have only a loose correlation to stock movements, they’re an excellent mode of diversifying a portfolio. This has become increasingly important as more and more types of assets have become more closely correlated. Investors who stick to only these types of assets are more likely to experience a major loss if things go south. With investments in gold, a tanking stock market doesn’t necessarily mean gold valuations will follow.
In 2015, the universal all-in-one sustaining cost was $1 greater than $1,050. Gold mining industry managers understood that the price of an ounce of gold was about to change in a dramatic way. Consequently, the larger mining corporations needed to undergo a complete restructuring process. Today, the most prominent gold mining corporations are set to make investors wealthy.
Geology and Financial Analysis at its Best
Matt Badiali’s training as a geologist and financial analyst enabled him to have a firm understanding of gold and other commodities. Instead of studying numbers, he analyzes the price of a gold mining stock based on the length of time it takes for miners to drill holes. Mining crews that drill holes faster may experience greater productivity.
Matt Badiali believes that drillers offer the key to future gold prices. As a former environmental consultant, his distinctive educational background helped him develop his own unique perspective about the gold mining industry. With a degree in earth sciences from Penn State University and another degree in geology from Florida Atlantic University, Matt Badiali has a practical approach for analyzing the commodity markets.
Gold Mining Stocks Offer Investors a Rare Opportunity to Make Money
As a former geology professor at the University of North Carolina, Matt Badiali mentioned that gold mining corporation managers recognized the strong possibility that gold prices were going to change. The larger companies spent at least two years paying off their debts. The top gold mining corporations owed billions of dollars caused by the inability to stick with their budgets. Managers were unable to start new exploration projects. Investors lost billions of dollars. Large mining companies did not boast any earnings. Gold prices were far below the amount of money needed to make substantial profits.
Investors in Gold Mining Stocks May Experience Sizable Gains
Mining companies make impressive gains even when there is a tiny price movement in an upward direction. Consequently, the gold mining industry has improved. Today, gold miners stick to the business of mining. As a result, gold mining companies realize profits. Gold miners are aware of price fluctuations, especially when the prices rise. According to Matt Badiali, gold mining stock prices are going to go up even higher than gold valuations. Matt wants investors to know that today is a good time to buy and hold gold mining stocks.
Why? Because for the first time gold-mining stocks might actually pass the overall valuation of the precious metal itself. This comes as companies including Agnico Eagle, Goldcorp and Newmont showed promising gains that are likely to continue in the near future as they make wiser decisions and the gold market continues to improve.
Practical Understanding Leads to Predictable Results
When talking or teaching about investments, it can be easy to get lost in the esoteric and often impossible-to-follow intricacies of the financial market. This is particularly true of precious metals, which to the layperson can appear arbitrary in the way they’re valued on the open market. But when an investment leader has both the expertise and the storytelling ability to make complex investing seem simple, investors tend to wake up and pay attention.
Matt Badiali has earned a sound reputation because he explains commodities in a matter-of-fact way. He has worked in countries across the globe including Iraq, Turkey, Haiti, Papua New Guinea and Switzerland. During his travels, Matt has visited many mines and oil wells. He has interviewed prominent CEOs about their expectations. Matt has spent a considerable amount of time analyzing geology-related data. He is the type of person who believes in visiting localities in person for the purpose of gaining a thorough understanding of the processes. His interests range from the future profitability of gold mining companies to the local political climate.
While some investors are cautioning others against going all-in on gold mining stocks, Badiali says that the time is now. The market is fast approaching a moment when inflation will begin positively affecting gold’s value and the mining that surrounds it.
Once this happens, anyone who owns stocks in mining companies that might have previously been undervalued will suddenly find themselves with a great accumulation of valuable shares.
Additional Tips for Investing in Gold
In addition to the information already covered in this article and in Matt Badiali’s seminars and teaching opportunities, there are other tips that can help you become a smart investor in gold from the get-go.
One thing to remember is that one of the most appealing aspects of gold mining stock is that it’s easy to buy and sell. That means if you find yourself suddenly in a position where you need cash now, you can immediately sell off gold stock without long waiting periods or other delays. This isn’t always the case with investments made into actual, physical gold or other precious metals. These can take time and expertise to trade and turn back into cash. This can leave you exposed to potential issues if you’re in need of liquid assets fast. With gold mining investments, there’s no such risk.
Another thing to note is that not all gold mining companies are created equal. Gold mining is no simple task, and companies that do it well are vastly distinct from those that don’t. You want to invest in a company that has an excellent track record of making sound, wise financial decisions. You also want to make sure they have plenty of capital, insulating them against sudden closures or other issues that can kill your stocks. So how do you identify a gold mining company that you can count on?
First, you want to look at their executive management. That means you not only want to see a track record of smart decisions within the mining company, but also to look into executives track records at other companies. If a company employs management with a history of poor decisions, that should be a huge red flag for you as an investor. Find companies run by people who know how to make money, because you’ll then make money along with them.
You’ll also want to find a company that has proven itself able to navigate the complex and sometimes politically volatile world of mining for profit. As we’ve mentioned, most gold mines are not located in the most stable locations on the planet. As a result, the best and most consistently dependable miners know how to navigate themselves through difficult waters politically and environmentally. They do their due diligence, stay focused on following the right protocols, and always deliver despite changing geopolitical or geographical circumstances surrounding their operations.
Finally, look at the company’s financial history as a whole. Think of yourself as a bank of one giving them a business loan. You want to ensure that your investment will pay off. Is the company burdened with lots of debt? Are they limited in their cash flow? Gold mining requires constant influxes of cash to remain viable, so you want to see a miner with a budget and balance sheet that’s solid as a rock.
Yes, investing in gold requires a level of research that goes above and beyond what’s required for many simple stock investments. But Matt Badiali believes that if you can find all of these things in a company, the time to invest is now. Not later. And prudent investors who get onboard now will be rewarded with stunning returns in the future.
And as we’ve already touched on, gold mining stocks are prone to swings from time to time. That’s why it’s absolutely vital that investors exhibit patience. If you’re going to be selling off shares at the first sign of any trouble, gold and gold mining stocks are certainly not for you. They’re not for the faint-hearted, but rather those who can withstand market fluctuations with their nerves still in place.
Matt Badiali Finds Unique Investment Opportunities
Currently employed as a writer at Banyan Hill Publishing, Matt Badiali focuses his attention on mining, energy and agriculture. He has had meetings with prominent chief executive officers representing various mining companies. He has engaged in conversations with precious metal authorities. Accordingly, Matt’s knowledge encompasses the latest trends and technological advances. His expertise has resulted in guest appearances on financial programs around the country.
That same expertise is what led him to this incredible opportunity within the gold mining industry. After a turning point when the entire industry had to reexamine and restructure the way it operated and sustained its profits, Badiali sees that a boom is coming. These companies are now more agile, more adaptable, and more fully equipped to handle what comes next. Matt Badiali calls them “bare bones,” with all their remaining assets profitable. That means that they’re agile enough to be sensitive to the rising price of gold, and as a result their investors can stand to gain huge dividends.
Matt Badiali is Driven by Profitable Passions
Yet his greatest passion involves looking for unusual investment opportunities that benefit everyone. He has spent more than a decade writing about excellent commodity investments. In spite of his superior educational background and experience, Matt enjoys learning from other financial analysts who are experts in their fields. He agrees that the gold mining industry is not easy to understand. However, Matt’s understanding stems from his unique background as a financial expert and a former geologist.
For over twenty years, Badiali has been working within and becoming an expert on the natural resources industry from mining and agriculture to mining and precious metals. And he hasn’t just done it from behind a desk. Badiali has worked first-hand on enormous drilling rigs, delved deep into mine shafts to search for precious metals and even managed his own privately owned oil wells. In fact, each of these investments has profited Badiali not only directly but in terms of the experience they’ve gained him.
But Badiali first attained a level of notoriety in the investing world after the financial crash of 2008. During this period, Badiali did the opposite of many of his peers and made an ambitious call. He purchased gold stocks at a time when most others, including many of Badiali’s friends, wouldn’t dare. As a result, he found himself one of the rare individuals who found his stock increasing after the crash. The stocks he purchased at a price of $0.06 in 2008 sold at $2.64 apiece less two years later, in 2010. That’s a gain of significantly more than 4,000 percent.
From this experience, Badiali was inspired to expand his reputation as someone who is keyed in to the unusual, unexpected or undervalued investment opportunities around the world. He also pioneered interest in Freedom Checks, a vastly misunderstood and maligned government program that can lead to excellent long-term windfalls with proper management.
Investors Do Not Need to Invest Large Sums of Money
Many investors find themselves hesitant when they hear about gold investing, thinking that it’s an investment reserved for the super-wealthy. But that’s simply not the case. Badiali stresses that you don’t have to invest a boatload of your own money in order to make a significant gain, as long as investors follow a smart and informed path in investing.
Matt Badiali believes that people do not need to have large amounts of money to invest in gold mining stocks. People can realize impressive profits by investing $1,000 to $5,000 in gold mining stocks. Small investments can reap huge gains, especially if investors buy stocks at low prices and hold them for several years. Contrary to popular belief, day traders do not always amass fortunes by the time they retire. The problem with day trading is that traders prefer making immediate small profits instead of waiting for huge potential gains.
If you don’t own gold mining stocks yet, it’s time to go long. Here’s why…#goldprice #Mining #Commodities #Commodity #stocks #investing #Stockmarket #trading #WallStreet #WallSt #BanyanHill $nem $ABX $GG https://t.co/pVGPSqOg14
— Matt Badiali (@MattBadialiGuru) January 19, 2018
Investors Who Want to Retire in Style Need to Have Patience
Everyone dreams of making that one, big, genius investment that changes their lives in a matter of weeks. But the truth is that truly life-changing investing is all about patience. It’s about recognizing opportunities before they’ve developed into positive action. It requires an infinite amount of patience and the willpower to hold out when gains don’t come right away. Matt Badiali has made his living and his reputation operating in this world, showing extreme patience and shrewd investing when others were too afraid or too set in their outdated methods to make a bold move. Investors who buy gold mining stocks at the right time may realize profits that are beyond their wildest dreams. Matt Badiali thinks that the natural resources sector is going to realize tremendous growth during the next few years. People who wish to learn more about investing in commodities may want to attend a webinar hosted by Matt Badiali.
Read Next: How to Build Wealth