In a recent interview, famous investor and author Matt Badiali said that it is time every investor bought gold mining stocks. The question then is, why should investors buy the gold mining stocks now? This is a question we will delve into deeply and answer it according to the explanation given by Matt Badiali.
In December the value of gold went all the way up to 1051 per ounce, the highest that has been recorded in the last five years. Following the decline, those who bought the gold mining stock while the prices were down are now about to turn rich. Matt Badiali is a geologist. His education on geology enables him to understand gold and other commodities mining. Matt has a unique way of analyzing the prices of gold. His analysis is based on the ease of mining. How long it takes for the miners to get hold of the commodity is the main factor that determines the value of the commodity according to Matt Badiali. How fast miners are able to drill holes and access the commodity is a big factor in determining the price. Those miners who can drill holes faster have a higher potential of getting better productivity.
As a geologist, Matt Badiali believes that miners are the ones who will determine the future prices of gold. The focus, therefore, needs to shift to the drilling process for this precious metal. This concept that has been created by Matt Badiali is a concept based on keen analyses of the industry. Matt has work experience in environmental consultancy and educational background which enables him to have a unique perspective on the mining industry than other investors. Those who look at the industry just from other theoretical perspectives will probably not realize what Matt has done. Matt holds a degree in Earth Science from the Penn State University and a geology degree from the Florida Atlantic University. His approach to analyzing the commodity markets is unique but very practical as opposed to other methods. Follow Matt Badiali on Twitter
Matt Badiali has noted that the gold prices were going to change after carefully studying the markets. The gold mining industry was performing poorly for the last five years. Before the prices started to climb, big mining corporations were going through a hard time. Many companies in the industry had gone broke following them poor prices posted by gold. The prices were far below the levels needed to make substantial profits.
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