$50 Oil Is Back — Here Is What You Should Know
In a recent OPEC meeting, Saudi Arabia agreed to cut their oil production by 750,000 barrels a day. On the announcement, oil jumped from $45 to $50 a barrel. Saudi Arabia simply can’t survive with low priced oil, and with American inventories falling, better days for the price of oil lie ahead.
These Olympian Gold Royalty Companies are Insanely Attractive
As interest rates head into negative territory and countries like China dump US Treasuries, large banks such as UBS are confirming their bullish comments on gold that were made in previous months. According to fund manager Frank Holmes, one of the best ways to play gold is by owning royalty companies such as Franco-Nevada or Royal Gold. These companies offer a leveraged bet on the rise in price, but can still bring in returns when demand falls.
The Last Known Gold Deposit
The number of new gold projects has been falling since 2013, and Goldman Sachs predicts that there are only 20 years of mineable reserves left on Earth. The amount of time it takes to go from gold discovery to a producing mine is now at an all-time high, and gold discoveries are becoming rarer by the day. These facts, coupled with the health of the global economy, have led to an incredibly bullish environment for gold and 2016 could be the best year for precious metal related ETFs on record.
Peak Gold has Passed, But Patience Is Key For Striking It Rich
Right now, many large cap gold miners are following suit of iron companies and cutting costs to maximize the bottom line of their financial statements. It is expected these companies will outperform and beat expectations on profitability. However, the corresponding reality is that the M&A sphere might be boring for a while longer, until a bull market is firmly established. Hold on to your junior mining shares to see big gains down the road.