The Case for Gold and Gold Miners

Published on: December 21st, 2020

This report from Coast Capital is a precursor to James Rasteh’s upcoming appearance on Real Vision Live on Jan 8, 2021 at 12PM ET. At a time of unprecedented monetary expansion and inevitable currency debasement, it is surprising to note that gold miners, despite their very high margins and cash flows, happen to trade at all-time low valuations and in many cases all-time low share prices. The investment case becomes even more compelling when one considers that the world is running out of gold reserves – which means that miners with attractive deposits become more valuable by the day. Indeed, Coast Capital believes that gold miners present the most attractive opportunity set for investors, whether they follow a macro, deep-value, event-driven, momentum, or specialist investment philosophy. The price of gold may go up or down, but small and mid-tier gold miners – with compelling reserves in safe jurisdictions – are well poised to deliver great returns for investors.

Comments

  • JJ
    Jay J.
    22 December 2020 @ 11:28
    5 0
    Great piece, although it would’ve been helpful to mention some companies to look into as I already have a similar out look, this was just in greater detail and reenforcing to my out look
    • WA
      Wissam A.
      23 December 2020 @ 04:03
      3 0
      He had done an interview earlier this year with RV where he discusses some of the miners that his company is invested in.
  • JG
    John G.
    23 December 2020 @ 14:40
    0 1
    I'm one of those investors who lazily invests in a gold miner ETF. I think he is talking about me. LOL But if his predictions are correct, the GDX will rocket all be it maybe not nearly as much as some more speculative plays....Agreed. But while the gold miners have very high price movements, there is lower volatility in the big players. That's worth it to me.
    • CH
      Charlie H.
      23 December 2020 @ 17:17
      1 0
      What about GDXJ (junior miners) over GDX (majors) then for more beta?
  • RD
    Ryan D.
    28 December 2020 @ 22:17
    0 0
    He seems quite knowledgeable the fees for the fund aren't cheap though...