Gold has been on a tear…
The precious metal, which began the year at approximately $1,529 per ounce, is up 28% YTD and this could be just getting started.
The reason why is simple: Gold is the only game in town with stocks at sky-high valuations and bond yields at all-time lows.
And that has some VERY smart money piling in…
- Billionaire Investor Paul Tudor Jones (who first came to fame by calling the 1987 Market Crash) recently said “I think one of the best trades [over the next 12-24 months] is gonna be Gold.”
- Billionaire Jeff Gundlach recently noted that the Federal Reserves’ recent money printing, as well as economic weakness, make the dollar likely to fall against other major currencies and Gold to reach new all-time highs.
- Even Warren Buffett is getting in on the gold surge via a recent investment in via mega-miner Barrick Gold (GOLD).
We here at Bottom Line Investing continue to think Gold is one of the top investment themes of the year.
Here are our Top 3 Ideas:
- Pan American Silver Corp. (NASDAQ: PAAS) — Headquartered in Vancouver, CA, this $5 billion+ mining conglomerate has silver, gold, zinc, lead, and copper mining interests spread out across both North and South America.
- Royal Gold (NASDAQ: RGLD), with a market capitalization of $8 billion, is what’s known as a mining “streamer.” Basically, instead of actually owning the actual mine, Royal Gold loans money to miners and in exchange receives a percentage of the total metal production of that miners assets (i.e. taking a cut of the “stream.”). RGLD has the added bonus of paying investors a modest 1% dividend.
- Franco-Nevada Corp. (NYSE: FNV) is another metals streamer with interests in mines all across the globe. The other bonus with FNV is that you get further safety given its size: FNV currently sports a market capitalization of $27 billion.