Main Street Is Bullish on Gold While Wall Street Is Bearish
etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Nature s First Green is Silver | Gold & Silver Investing Channel
etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Gold Miners Retain Their Strong Fundamental Cases
Gold fundamentals remains sturdy, and the same can be said for gold mining assets like the
Sprott Gold Miners ETF (NYSEArca: SGDM). Recent struggles for the asset class could be an opportunity for investors to capitalize on stout fundamentals.
SGDM tracks the Solactive Gold Miners Custom Factors Index and “emphasizes gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity ratio,” according to the issuer.
Some good news for investors considering SGDM is the fact that mining stocks are attractively valued.
“Gold stocks remain undervalued, relative to both their underlying profits and prevailing gold prices. Despite gold’s recent correction, the gold miners are still earning money hand over fist,” reports Seeking Alpha.
Some experts see the stars aligning for gold miners.
“In a recent interview with Kitco News, Douglas Groh, co-portfolio manager of the Sprott Gold Equity Fund, said that after all the excitement in 2020, miners saw record margins and unprecedented cash flow. Groh added that he is not expecting to see any significant fireworks for the first quarter of 2021,” reports Neil Christensen for Kitco News.
SGDM remains catalyst-rich, owing to rising inflation and miners’ dwindling costs, among other relevant factors likely to linger through the end of this year, if not beyond.
“2020 proved to be a wild ride for miners that had to navigate mine closures due to the COVID-19 pandemic and then ramp up production to capture all-time high gold prices. Groh said that many companies would take the first quarter to get back into their production rhythm,” according to Kitco.