Buy Gold Miners Right Now

As the gold price goes up, the profitability of these gold mining stocks will go up much more. If you don’t own gold mining stocks yet, it’s time to go long.

On December 17, 2015, the gold price hit $1,051 per ounce. That was the lowest gold price in five years. More importantly, it was below the “drop dead” price of most gold mining companies.

Gold miners are in the commodity business. They balance the costs of energy, concrete, iron, water and people versus the value of gold. No matter how great the mine is, how rich the ore or how easy it is to mine, there is a bottom line. A minimum cost per ounce of gold to keep the company solvent.

It’s called the “all-in sustaining cost.” That’s how much money it costs the company to keep the lights on per ounce of gold produced. And in 2015, it was universally more than $1,050.

When the price of gold hit that point, the gold mining industry knew it was at a turning point.

That forced a radical restructuring of the big miners. Today, after that “drop dead” date, the big gold miners will make us a ton of money as the gold price goes up.

A Golden Opportunity in Gold Mining Stocks

The good management teams knew changes were coming. The big miners spent most of the prior couple of years writing off bad investments. Big gold mines that were billions of dollars over budget. Exploration projects that didn’t work out.

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And tens of billions of dollars in bad investments all went away with the swipe of an accountant’s pen.

However, what the big miners couldn’t hide was their lack of earnings. The chart below shows the price of gold versus the quarterly earnings of the three big gold mining companies: Newmont Mining Corp. (NYSE: NEM), Barrick Gold Corp. (NYSE: ABX) and Goldcorp Inc. (NYSE: GG).

gold mining stocks chart

You can see exactly when the price got too low for them. Small changes in the price of gold make huge impacts on the gold miners’ profits.

However, fast-forward to today. You see, these miners aren’t messing around anymore. They pared down to the bare bones.

The remaining assets are profitable. That means they’re sensitive to the rising gold price.

I made a short video about it that you can see here:

In summary, as the gold price goes up, the profitability of these gold mining stocks will go up much more.

If you don’t own gold mining stocks yet, it’s time to go long.

Good investing,

Matt Badiali

Editor, Real Wealth Strategist

Editor’s Note: During historical testing, Matt’s strategy zeroed in on Ventana Gold like a cruise missile. The company surged by 10,558% … and would have turned a modest $1,000 investment into a windfall of more than $100,000 in just one year. With extraordinary gains like these, you’d never have to worry about retirement again … and small investments of $1,000 to $5,000 are all it takes. Plus, at this very moment, the natural resources sector is primed for more explosive growth than we’ve seen in years. To learn how Matt’s new research service finds these life-changing opportunities, click here to sign up for his special webinar presentation.

  • portlandeastside

    What about the leveraged junior gold miners etf, JNUG?

  • Bat Repelent

    Matt, are you implying that these majors will give us 100:1 returns? I think the jr miners will do a better job of that such as AXU, BTG, CDE, CLF, EXLLF, HBM, IAG, IVPAF, PVG, SVM, TECK, TGB. The PM”s with copper, zinc, cobalt, and lithium will be the front runners in the months ahead. With silver at 78:1 to gold today, will run faster UP than any other metal IMHO.

  • Jack Knox

    Quite a disconcerting discontinuity in portfolios from December Real Wealth Report or am I missing something here?

  • larryconsolverretdavarmlsiila

    My question is Why do Banyan Hill; Bonner & Partners always take up a bunch of your time to sell you something? Just tell Us in a feel words what you believe and then give us your sells pitch. It seems many times only that makes BUCK is the sellers. Do they offer Stock?

  • portlandeastside

    I guess if we want a diversified portfolio with stocks, income instruments,etc..we need to look into Zacks, Investors Insight,among others with good records…Real Wealth apparently is going to be 100% commodities..

  • Jack Knox

    You’re right. Weiss or BH or XYZ only get to the point (or sometimes not!) after an hour of BS and then you have to join another multi K$ program to get details!

  • Jack Knox

    Thanks for reply. Maine or Oregon?

  • portlandeastside

    Hello, Jack….in Oregon…Yourself?

  • Jack Knox

    Eastern OR. Fossil beds, John Day River, etc.

  • cindy triplett

    Do all of you people have no other news sources that cover this stuff??? I have spent more than $300. To learn from more than one person. These people are correct about gold and most of what I’ve heard from them , so far. I lost 1/4 of my original investment because my other source didn’t explain why we were investing in gold. So I sold just as the market swung. Now gold has already gone up in some mining by30.00 a share. Others smaller, other more. This advise from here came just in time.

    Gold will skyrocket this yr. It has just been discovered that gold can cure cancer. With additional tech. Which is already here, it can be discovered 20 days before you get lung cancer, prostate cancer and other hard to diagnose, hard to cure cancers.

    You may not have the whole story but listen to these guys. Its very affordable compared to other sources. Most want $2,000. For this Info. I am super impressed with my original $49. Subscriptions.

  • Ed Conner

    I agree, I’ve joined into two (at $79.00 ea) . It’s like I’m caught in a loop of the same self kudos but no significant meat as was expected. I think I got suckered into this one. I’ll give it a couple months but don’t have my hopes up.

  • Renrah

    get a good program like TC2000 or VectorVest and find your own stocks and that way you’ll know not 10,000 people are piling into the same things. ZACKS is good to search for their # 1 rated stocks also