The Oxford Communiqué Investor Report Update – March 30, 2017

The Club’s Research Team has been running at full speed, publishing and updating numerous Investor Reports over the last few months… all of which can be accessed right here on our website at any time. Members often tell us they’d like to see more coverage of the stocks discussed in these special broadcasts. That’s why, once every month, we publish The Oxford Communiqué Investor Report Update.

Keep in mind that these are speculative opportunities. That’s why we strongly suggest you don’t weigh any one position greater than 4% of your portfolio. And, unless otherwise stated, please be sure to use The Oxford Club’s standard 25% trailing stop.

---

ALPS Sprott Junior Gold Miners ETF (NYSE: SGDJ) – “The Oxford Club Guide to Gold: The Owner’s Manual” – Recommendation Date: 3/14/2016

Our report on gold was part of the premium report package offered with the “$42.4 Billion 2016 Consumer Rebate Program.”

As a reminder, The Oxford Club’s asset allocation model recommends keeping at least 5% of your portfolio funds invested in precious metals for the long term, with gold as a core holding.

This junior gold miners ETF tracks the Sprott Zacks Junior Gold Miners Index. It enables you to capture the performance of the best of the junior mining sector with a single, well-diversified investment.

We don’t try to time the gold market. But even though we’re down about 14% since we made this recommendation, now looks like a good time to make sure you have a portion of your portfolio allocated to gold.

The Fed’s rate increase in mid-March caused gold prices to quickly rise about 2%. However, it was intermediate and junior gold mining companies that got the biggest pop. Our Junior Gold Miners ETF has jumped approximately 7.4% since the Fed’s move.

Although tighter U.S. monetary policy is not bullish for gold (globally, interest rates are still very low or negative), the outlook for the metal is improving. Bank of America Merrill Lynch increased its forecast to $1,400 by year-end, citing uncertainties surrounding inflation, protectionism and European elections.

In addition, we are starting to see a fundamental supply and demand discrepancy. Supply shortages are popping up more frequently, particularly in Asia.

Combine that with gold’s role as a risk-management tool and a portfolio diversifier, and it’s easy to see how gold can generate very positive returns for your portfolio this year. Continue to hold the ALPS Sprott Junior Gold Miners ETF.

Good investing,

Chris Matthai
Senior Research Analyst
The Oxford Club