The mid-tier gold miners’ stocks in the sweet spot for price-appreciation potential have been struggling in recent months, grinding lower with gold. Their strong early-year momentum has been sapped by recent stock-market euphoria. But gold-mining stocks are more important than ever for prudently diversifying portfolios. The mid-tiers’ recently-reported Q1’19 results reveal their fundamentals remain sound and bullish.
The wild market action in Q4’18 emphasized why investors shouldn’t overlook gold stocks. All portfolios need a 10% allocation in gold and its miners’ stocks! As the flagship S&P 500 broad-market stock index plunged 9.2% in December alone, nearly entering a new bear market, the leading mid-tier gold-stock ETF surged 13.7% higher that month. That was a warning shot across the bow that these markets are changing.