Time For Gold's Juniors To Grow Up
Gold continues to be battered by a strong dollar; consolidation may be the solution to underperforming junior gold miners.
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Gold continues to be battered by a strong dollar; consolidation may be the solution to underperforming junior gold miners.
Gold's traditionally positive performance in an inflationary and rising rates environment is hindered by the strength of the U.S. dollar.
Global geopolitical developments and accompanying risks to the global economy are supportive of gold prices. Gold approached its all-time high in March.
If inflation remains elevated for several years, the financial system will not return to normal for an extended period.
The SGDM Methodology Gold has also found greater support from safe-haven demand and a more dovish outlook from major global central banks, notably the Federal Reserve’s shift toward potential interest rate cuts to combat slowing growth. Miners are proving adept at managing costs. SGDM follows mid- to large-cap gold miners, but the underlying index weights components based on quarterly revenue growth on a year-over-year basis and the quality of its balance sheet as measured by long-term debt to equity. As such, by focusing on balance sheet strength, the fund has greater exposure to companies...