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Will the Uncertain Economy Boost Mining Stocks?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
The history of gold dates back to 3000 B.C. when the ancient Egyptians started using the material to form jewelry, but it was not until 560 B.C. that it was used as a currency. Since then the purpose for gold has diminished, yet the majority of investors still hold some form of it in their portfolio. They have the option of holding the actual commodity, buying stock in gold mining companies or investing through exchange-traded funds. The importance of gold goes back to the fact that is has preserved wealth throughout thousands of generations. When investors face a declining U.S. dollar and rising inflation, the idea of the resource holding onto its value becomes even more important. Resulting from recent trade tensions, gold prices rally, pushing it towards a new six-year high.