6 Ever-Shining High Quality Gold Stocks

Gold is an enigma–sometimes is a currency or a hedge against inflation or something else. What’s holding back gold now is that it’s the inverse of the U.S. dollar–which has been strong this year. Producers like Agnico have operating leverage–when gold prices rise, their prices and earnings will rise disproportionately more than the commodity. Agnico has several mines operating well. It’s a good house in a bad neighborhood.

(Past Top Pick, June 22, 2018, Up 1%) It took a dive after earnings (and reducing costs), then recovered after management said it would restructure the company. Solid company and he even added to his holdings.

(Past Top Pick, Sept. 1, 2017, Down 43%) 10% of his portfolio is in gold, which is standard. The Trump tax cut has ballooned the U.S. deficit and potentially spells trouble for America. In a recession, this balance sheet will seriously haunt the U.S. So, you must buy some gold.

He just raised his target from $1.40 to $1.45. He likes plays with good reserves in the ground and generating cash flow. If you own it, hold it, don’t sell it. This sector has taken a beating. Consider averaging down, because there will be a rebound in precious metals. Be patient with the metals.

Has a $5.50 target and has been watching it. He likes this–it has good upside, low cost production and reserves in the ground in good locations. He likes the CEO. Below $4 is a good entry point.

During flight-to-safety periods (as he expects in the next few years when market become unglued), gold will shine again with a good rally. He’s added to his position. GDX is US-listed gold miners. Gold stocks vs. gold price are 35-year lows, and gold stock vs. the S&P 500 are as cheap pre-Recesssion (2005-6). It’s a small hedge on a portfolio.