PHLX Gold/Silver Sector (XAU): Why I’m Buying One Of The Most Hated Sectors On Earth

There’s a growing realization that precious metals can play an important role in protecting wealth. And during 2008, such buying helped keep the price steadier than other commodities.

The fact that gold and silver are crisis-resistant commodities is good. The fact that today we can buy mining equities at low valuations is great. Between these two factors, I think this space will be well-positioned for gains if the macro-environment holds up — and will also hold value, and perhaps even gain, if we see any serious problems.

P.S. — In the September issue of my Scarcity & Real Wealth newsletter, I told subscribers about a gold miner that I think has fallen too far compared to the price of gold — especially when you consider that it’s one of the top low-cost producers in the sector. Out of fairness to subscribers, I can’t reveal the name of the company here. But you can get access to my September issue to learn the name of this company by signing up for a risk-free trial of my newsletter. To get all the details, click here.

– Dave Forest

Warren Buffett’s Top 5 Stocks

Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.