FACTORS THAT FAVOR GOLD [CHARTS]

0
FACTORS THAT FAVOR GOLD  [CHARTS]

Factors That Favor Gold In The Current Environment by Sprott Asset Management

Negative interest rates have historically been supportive of the price of gold. In Q1 2016, there was $7.9 trillion of negative interest rate-bearing bonds.

clost

Mohnish Pabrai On Value Investing, Missed Opportunities and Autobiographies

Mohnish PabraiIn August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More

In response, there has been a significant sentiment shift in favor of gold. ETFs posted significant increase in fund flows, 11.4 million ounces YTD.

default image

Historically, in gold bull markets gold equities have outperformed gold bullion. The ratio of gold equities to gold today is less than half of its historical average.

default image

During the recent gold bear market, gold companies have reduced their operating costs and capital expenditures. All-in sustaining cash costs have declined by 26%, from $1,265 per oz. in Q3 2012 to $936 per oz. in Q4 in 2015.

default image

Despite the rally in 2016, valuations of gold miners relative to the price of gold are at the lowest they’ve been in 15 years. Compared to their gold reserves, miners are 19% cheaper than a year ago.

clost

The average 24 month return of gold equities following the market bottom of the last 7 bear markets was 117%.

clost clost

SPROTT ETFs

Sprott ETFs provide investors with access to innovative and unique indexes that are designed to outperform passive market cap-weighted offerings. Each Index is designed using specific factors that matter™ for a particular strategy. These customized factors are selected because they have historically shown correlation to stock performance.

Each Index:

  • Seeks to outperform purely passive representations of the gold and silver mining industry
  • Uses transparent, rules-based methodology designed to overweight gold stocks with attractive investment merits relative to the other stocks in the index
  • The stock selection and index weighting criteria were co-developed by Sprott Asset Management, a leading, long-time gold sector investor, and Zacks Index Services

FACTORS THAT FAVOR GOLD

  • Reconstituted quarterly
  • Stocks weighted in the index based on quarterly revenue growth and long-term debt to equity

FACTORS THAT FAVOR GOLD  [CHARTS]

  • Reconstituted semi-annually
  • Stocks weighted in the index based on revenue growth and price momentum

See full PDF below.

Updated on

No posts to display