I'm finding that more and more companies on my watch list with precious metals operations are finding their way onto my buy list.
Kirkland Lake Gold (TSX:KL) is one such company. Right now, I believe the spot price of gold is relatively cheap compared to the obvious amounts of money printing that would be required to support the quantitative easing levels necessary to keep the global economy from a full blown Great Depression.
Additionally, the U.S. dollar remains abnormally strong right now. Should global investors and market makers lose faith in the validity of the greenback as a sole global reserve currency, we could see a massive spike in the price of gold, and all precious metals, for that matter.
With this backdrop in mind, one might be tempted to buy any old gold producer, but right now is really the time to be targeted in one's portfolio selection process, in my view.
Of the mid-cap gold producers on the TSX, Kirkland Lake happens to be one of my favorite picks due to the high quality of the company's operating mines (grade and scale) and the company's valuation relative to its potential.
I will continue to keep Kirkland Lake on my watch list for the time being, but should conditions in the markets worsen, I may consider adding a position on any weakness moving forward.
Invest wisely my friends.
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