Should one own gold or gold Miners? Well, data is pretty telling.
Gold is selling at an all-time high, finally reaching north of $2000 per ounce. Since January 2017, gold has increased in value 68% where the miners index has yielded a total return of 84%.
Now, there is the effort one has to make to find a miner that is simply a well run business. When one looks for bullet-proof miners that are undervalued based on historical growth rates, the companies have grown 137% since the beginning of 2017. Currently, there are 12 passing companies, and I own one of them, Agnico Eagle Mines ($AEM). This is a company that generates positive cash flow and minimal debt. Given they dig the gold out of the ground for around $800/ounce, they should remain profitable for some time. I view their recent acquisition of Kirkland Lake (DL: $KL) as a bonus.
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