The Gold Report
The
best time to buy gold is when the market hates it, especially when it
comes to junior explorers with market caps under $1 billion, asserts
Ralph Aldis, senior mining analyst with U.S. Global Investors. In this
interview with The Gold Report, Aldis shares his main modeling themes
and companies that fit the bill. He also explains the win-win-win
advantages of flow-through stock issuance, a technique allowed by some
noteworthy Canadian provinces.
The Gold Report: At the New Orleans investment
conference, U.S. Global Investors CEO Frank Holmes reminded investors
that gold is not a means to get rich quick, but should act as a
diversifier in a portfolio, a form of insurance. Do you have to remind
investors of that?Ralph Aldis: We do. We always stress that no more than 10% of a portfolio should be exposed to precious metals. Given gold’s poor performance in the last two or more years, the trend has been to chase the market and the S&P 500. This is exactly when investors should be using gold plays to diversify and provide a bit of insurance. If they made good money in the market, they could take 5% or 10% off the table and deploy it in gold plays.
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