Topic: How To Invest

What is Pat’s commentary for the week of August 11, 2020

Article Excerpt

You may recall that one year ago, we devoted our July 2019 client letter to the outlook for gold and gold stocks. We said, “We now think gold stocks give you good odds. Recently, we’ve begun investing in high-quality golds for our clients. These gold-mining companies now look better than in the past for several reasons. For one, they have taken steps to cut their mining costs and expand their gold output. In addition, their shares have been poor performers since around 1990, while the rest of the market shot up. The falling rates of inflation since that time have wrung the speculative excesses out of golds’ share prices. Investors now price golds much more like ordinary stocks, rather than special situations that are worth a huge premium.” At that time, gold was trading at around $1,450 U.S. per ounce. It has since risen by around 50%. Our favorite gold stock at that time was Newmont, which was trading just below $50…

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