There are many people who used to believe in the precious metals, particularly gold and silver. Due to several years of poor price action from the metals, many have lost hope and have tried their luck in other investments. Matt Badiali is one of the few investors who still sees value in both gold and silver. He feels both metals are undervalued and are going to be priced higher, rewarding patient investors. About Matt Badiali, he made his living as a geologist for over twenty years. Part of his geology education consisted of learning about the important factors that drove the supply and demand fundamentals of commodities. According to Matt both gold and silver may endure some more short-term pain, but in the long run, the fundamentals will ultimately play out, and investors who were patient enough to hold will be rewarded well.
The US dollar has appreciated very well this year, but this is usually not good for commodities. The dollar continuing to strengthen has been part of the reason that gold and silver have not done well. There are also numerous geological issues around the business world that are keeping investors worried. As long as the US dollar is perceived as a safe asset to hold, investors will continue to buy and hold dollars, which will continue to add to US dollar strength. Matt Badiali says that cryptocurrencies captured a lot of investment money that would have traditionally entered the precious metal’s market, which also was bad for gold and silver.
Matt Badiali feels that eventually, US dollar strength will not weigh so heavily on gold and silver. One trend he sees continuing over the coming years is that the US will keep adding to its enormous debt. This has always been very positive for gold and silver. Matt is forecasting inflation to pick up in a few years. Gold and silver will do extremely well in an inflationary environment. Mr. Badiali sees explosive gains in the precious metals industry and feels that it will be the underlying mining companies that deliver unbelievable returns. Mining shares will typically outperform the underlying commodity and allow investors to leverage a precious metals position.