Sunday, December 3, 2017

One Of The Greats In The Business Just Flashed This Major Alert On Gold And The Miners

"One of the greats in the business just flashed this alert on gold and the miners.
This piece was delayed from being published due to technical difficulties that have now been resolved. KWN apologizes for the delay.
Gold & Miners: Bridging The Performance Gap
By Trey Reik, Senior Portfolio Manager, Sprott USADecember 1 (King World News) – In this month’s report, we examine the interplay between gold bullion and gold equities. This relationship has been noteworthy in 2017, given an anomalous performance gap that we believe may provide investment opportunity for precious metals investors.
At Sprott, we view investment merits of gold and gold shares as distinctly different. Gold offers the ability to remove investment capital from the traditional financial system at a moment’s notice. Gold shares, on the other hand, offer two important variations. First, gold mining equities provide well-documented torque to cyclical advances in spot gold prices. In essence, high-quality gold miners introduce a value-creation proposition to the secular opportunity of rising gold prices. Second, we believe gold shares represent a tactical portfolio allocation capable of generating significant alpha during periods in which excessive ebullience for U.S. financial assets is being recalibrated. We suspect that we may be coming upon one of those periods now…"

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