The year of 2015 was a rough ride for gold, with the shiny
metal navigating an unsupportive macro environment. A stronger dollar, a slump
in oil prices and the climb in U.S. equities led to a more than 11 percent fall
in gold’s value last year. With the Federal Reserve finally ending an era of
near-zero interest rates with the December lift-off, gold sank to six-year
lows. A steep fall in prices also led to multibillion-dollar write-downs by
gold miners.
However, 2016 has started on a positive note for gold. The
yellow metal has been the bright spot among precious metals, with prices
shooting up roughly 17 percent year to date, making it the most attractive safe
haven asset at present.
A slew of factors have contributed to the recent rally in
gold prices, including concerns over the global economy, dollar weakness,
volatility in equities and the introduction of negative interest rates by
several of the world’s central banks (including Japan), which have spurred safe
haven demand for gold.
While Barrick Gold Corp. (NYSE: ABX) is the industry
standard in gold, smaller companies such as Star Mountain Resources, Inc. (OTC:
SMRS) should be given a look as well. Star Mountain, a minerals exploration
company, pursues the acquisition and consolidation of mining claims, producing
mines, mineral leases, and historic mines in the United States. The company
explores for gold, silver, copper, lead, zinc, silica, and zircon deposits and
holds interests in the Balmat Mine located in the Balmat mining district of St.
Lawrence County, New York.
Gold moved substantially higher in the past few months,
rallying from $1,045 to well above $1,250. Gold stocks and silver stocks
rallied as well, and many investors and traders claim that the decline in gold
that started in 2011 is now over. The answer to the question whether this is
the case or not has critical implications for precious metals investors, as the
above impacts one’s decision to either invest in the precious metals market or
wait to do so at much lower prices.
Gold has always been a solid and stable addition to your
portfolio. Companies like Star Mountain Resources search out and acquire
precious metal producing properties with proven reserves and production.
For more information, visit www.starmountainresources.com
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