Precious metals are not having a fun time right now. The market is suffering on three fronts. Productions costs have increased, energy is rising, and commodity prices are lower. Such factors have caused the HUI index for gold to drop 11%. Matt Badiali, investment analyst for the natural resource market, expects the second-quarter to pretty much follow the first. So, he is recommending that people back off from gold investments right now.
Matt Badiali is an analyst for Banyan Hill, he uses his investment expertise to aid novice-level investors. His understanding of the natural resource market is vast, and he pays attention to everything. He looks at gold, silver, oil, and even cannabis. He does not just watch the companies and follow trends, Matt Badiali also travels to where these companies are and looks at their operations. In addition to being an analyst Badiali is also a geologist, and he uses his knowledge to vet the various operations that go into natural resource production. The advice he gives is usually actionable, accurate, and beneficial. Right now the word beneficial is not something he would use to describe gold.
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— Matt Badiali (@MattBadialiGuru) September 17, 2018
Despite his projections on the second quarter he is not telling would-be investors to walk away. Right now, he believes the best place to be is on the sidelines. This is because upcoming developments within the gold market could bring about profitable returns if investors known what to look for. The market will eventually turn around as gold’s usage in industrial endeavors is too valuable. Matt Badiali recommends looking at companies that posit profitable numbers for the first quarter despite the weakness in the market. If they are able to make profit amidst high energy and low production they must be doing something right. As gold prices are low at present, investing in one of those companies is a good idea. When the market returns their profits will soar, and so will any investments in them. Before Badiali makes any future investments he is going to need the prices for copper, gold, and oil to stabilize. So for now he will continue to wait.