As an expert on commodities, Matt Badiali understands the factors that can affect their price monuments in the markets. Although many of the commodities have been beaten up, he remains bullish on several of them. About Matt Badiali, he has traveled the world inspecting mineral assets firsthand. He knows how to identify a profitable natural resource asset. Today, he applies his science background with his finance skills and gives investment advice through his newsletter the Real Wealth Strategist. This is a great newsletter for individuals trying to make smart bets among natural resource companies. One call that Mr. Badiali has made this year is to start accumulating gold mining shares.
The sentiment in the gold market is at all-time lows and gold has been a major disappointment for investors for several years. Matt Badiali says that how the gold miners had been unprofitable for several years. With the anticipation of higher gold prices, many mining corporations racked up high debt loads. Many gold miners were forced to cut back on exploration. The past several years has involved the top mining companies cutting costs like crazy to reduce their enormous debt loads. Mining companies can be some of the most profitable companies for investors because they offer leverage to an underlying commodity. If the commodity goes up, the mining shares will also go up but usually a higher percentage.
According to Matt Badiali the gold mining industry has taken smart steps to improve their operations over the past few years as gold prices were declining. He mentioned how some of the major gold miners had better than expected results. He feels that gold prices are going to gradually rise, and these results should continue. Gold has recovered after hitting $1050 back in December of 2015, but most investors still will not touch the metal. With the current valuations as low as they are for the gold miners, his investment advise to investors to go long on gold miners. He feels that gold is going to continue its gradual move higher, which will ultimately push the mining shares substantially higher from their current price levels.