From Frank Holmes at Frank Talk:
If you’ve run into difficulties lately finding the best gold stocks to invest in, you’re not alone. Sentiment has been down… But there are still some very attractive opportunities out there in the goldfields, one of which I want to share with you.
First, a quick recap: The price of gold tested support of $1,200 an ounce on Monday as the U.S. dollar strengthened to a 16-month high, propelled by expectations of additional interest rate hikes. A stronger greenback, remember, weighs on gold as well as a number of other commodities, including oil, since they’re priced in dollars. I’ve inverted the dollar’s values in the chart below so it’s easier to see this relationship.
Gold miners have felt the pressure, too. In the 12-month period as of November 12, the FTSE Gold Mines Index, which reflects the stock performance of producers from around the world, lost 17.66 percent.
This may have made it challenging for some gold investors to find promising stocks. As such, assets have dropped. Gold and precious metal ETFs in North America saw net outflows of 58 metric tons in 2018 through October 31, according to the World Gold Council (WGC).
But selling now is the wrong move, I believe. Gold stocks appear to be highly undervalued relative to the S&P 500 Index, and a sharp drop in the market could strongly boost demand for the yellow metal. This means it might be time to consider accumulating.
Meet Menē, Gold Jewelry Disruptor
For investors who wish to increase their exposure to gold, I believe our Gold and Precious Metals Fund (USERX) is an attractive option with a history of strong performance. USERX is actively managed, meaning we rely on fundamentals and on cultivating relationships with management teams to decide which companies go in and out of the fund.
One of those companies, the one I hinted at earlier, is a newcomer to the industry—Menē Inc.
You might not have heard the name Menē yet, but you could soon enough, especially if you’re in the market for fine jewelry…
Continue reading at Frank Talk…
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