The ASX Gold Index fell 23% over the year.
| Dear Reader, Wow. Are we into the new financial year already? It sure goes fast. OK…maybe not if you were in gold stocks over the last 12 months. Precious metals mining stocks ended up a bit worse for wear. The chart below shows the ASX Gold Index’s [ASX:XGD] performance: | Source: Thomson Reuters Datastream |
The ASX Gold Index fell 23% over the year. At its lowest in early March, the index was down 30%. But this is not the time to despair and give up on buying gold stocks! I believe that the gold mining industry is actually looking stronger than ever. I should know, I track it every day. Remember, we saw the price of gold rise significantly in 2019. It brought gold producers to new highs. They experienced better profit margins and increased their cash balances. I expect a rerun of this scenario in ‘FY22’. I also expect lots of industry consolidation and mergers in the coming year. Find out what that could mean for your portfolio, right here. Regards, Brian Chu,
Editor, Rock Stock Insider |
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