SAN JOSE, Costa Rica — Gold has played a major part in the lives of the Costa Rica-based Aden sisters.
It was Pamela and Mary Anne Aden’s study on the movement and cycle of gold that launched their investment career in the 1980s. Last year, their bet on gold stocks and coins has propelled the portfolio returns of the Aden Forecast investment newsletter.
While the market as a whole, as measured by the Wilshire 5000, lost 22 percent over the 12-month period ending in January, the Adens added 20 percent, according to the Hulbert Financial Digest, a service of CBS MarketWatch.
Through the bear market, they’re nearly breakeven over the three-year period, while the Index gave up a cumulative 36 percent. This year thus far, they’re tracking the market, down 2.5 percent last month.
“We follow the markets closely, focus on a major trend and look for the best part in a major ride,” said Pamela Aden, who writes the newsletter with her sister. They’re both directors of Aden Research.
About three years ago, they saw the gold market starting to stir. The precious metal’s movement began to confirm a major uptrend, Pamela Aden said. Meanwhile, the stock market began to turn bearish. She concluded that an ensuing downturn would be ugly “just to get rid of the excesses” of the tech bubble.
“We thought, ‘this is it’,” Aden said. “This is the beginning.”
And gold’s bull market isn’t over yet, she believes.
“I think it’s just getting started, actually,” Aden said. “It’s got a long ways to go — a year or two.”
The current weakness in gold is a buying opportunity, she said. The dollar — which moves opposite to gold — has been beaten down and is overdue for a short-term rebound, which would depress gold. (Gold is denominated in U.S. dollars.) But gold’s run will continue because she sees the dollar continuing its decline.
Aden recommends buying gold coins and gold stocks. Among gold stocks, she prefers the more established companies that don’t do much of gold hedging. Hedging locks in the future price of gold, so a mining company’s profits won’t rise as much as the metal.
Her picks meeting this criteria are Glamis Gold
— which was the ninth best performer in the New York Stock Exchange last year — Gold Fields
Glamis shares finished 56 cents lower at $11.08 on Thursday, while Gold Fields closed 15 cents down at $12.24. Newmont closed 65 cents lower at $26.85, Kinross fell 10 cents at $7.19 and Anglogold rose 12 cents to $31.63.
View more information: https://www.marketwatch.com/story/aden-sisters-favor-gold-stocks