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Gold Company Stock Plays

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    Point View Wealth Management president David Dietze on gold companies that will boost your portfolio.

  • Duration 3:58
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In minutes -- her while a goal is trying to stage a comeback after plummeting to a six month low.

Ahead of yesterday's fed released our next guest says now's the time to -- the gold stocks.

Different like you're David Gates point -- wealth -- president chief investment strategist joins me now wanna start up.

With Newmont Newmont Mining if you will because a lot of the stocks have had year over year declines Majorly on a percentage basis but -- Really getting hit down 35% over the last year so well by -- and -- high yeah.

-- but he could hit the deal I mean you know basically gold pulled back about 20%.

Since about eighteen months ago gold stocks themselves have just this devastated.

And so the question is.

We -- you cheapest way to prospect -- it out in the mind or right on Wall Street and I think Newmont as the gold mining stock looks very very good.

For example if you divide the number of -- as they head out into -- market cap of the company which is trading at 60%.

Of the market cap and that's.

After extraction costs after time value of money yeah.

Well good dividend as well the have a habit and I Citadel now.

So they're very innovative new -- because they've tied the dividend is complicated formula to the priced -- right now you get three and a half percent almost double what you get -- ten year treasury what's gonna be the better inflation has.

Any and is the ticker on that -- -- the look at Alan good to see that chart also AS say you're recommending this one as well this is a fund but again it's a way to play.

The actual gold the company side of gold up the contracts of gold difference.

Hit it looks good for two reasons one -- the traditional knock on a gold mine of course -- there could be -- flood there could be political expropriation something company specific so -- -- -- -- buy a basket of the -- that of course what's the cheapest way to buy a basket beauty -- this closed -- fund its trading about a 10% discount to the net asset value of the holdings that the closed -- fund is very much out of -- it off a third from -- 52 week -- why not.

Also like MS like gold miners you also like Barrick Gold Barrick is well -- hitting a new annual low today we should mention that I'm not it has been as negative -- you're saying.

Buy low sell high certainly and then as well as MSCI that's that's -- -- and a new low today that's actually an all time low.

On MSCI I wouldn't something else heard this kind of a side effect or maybe it's the cause fueled the golden should not as the fat.

What we've been saying as as they keep interest rates incredibly low zero point 25%.

-- you see the pressure on the dollar.

We're not seeing that translate into the gold contract if anything else we're going the opposite.

And the last 48 hours last two sessions explain if we're saying a true.

Change now.

And how gold the Fed and the dollar -- portly.

That that's a lot of questions could -- -- But.

But but but but certainly there there was -- in the markets Tuesday felt that there are censored change in the bond buying promise that the Fed has announced announced but you know the reality is I think they're locked and loaded they said they're gonna keep going into 26 and a half percent.

-- unemployment.

And -- two and a half percent inflation we're not anywhere close and even those now of course worldwide they're printing money they're gonna continue to print money here Japan is the latest.

Joining the brigade and you know at the end of the day -- -- -- historical -- on inflation so I think if you think the printing money and it's gonna continue gold going up.

So this in my faith and Ben Bernanke even -- to a secondary accent here maybe that is I'm backing off -- -- -- the same time I'm having faith that.

Maybe all of the panic is out of the markets whether it's Europe whether it's this country.

And that's why you're saying -- -- that you are in the it -- right thing by those gold mine -- Yeah absolutely -- I think the weakness in the economy is gonna create more money printing which is alternately going to be inflation in -- buying gold at a very low price right now relative to where we see it going over -- Over the near term.

Why isn't what we're assuming a single let me as a better economy think all of us would take back that would lift all boats and we kind of need right now we like businesses say my -- in your portfolio alright David.

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