We put much of our faith in the international monetary system, but we know the market can collapse at any time. In the 20th century, the system crashed three times in less than 60 years. James Richards, a well-respected expert in the financial world believes another financial collapse is on the way. He also believes in owning tangible assets because the value of money goes up and down. At the moment, gold is one of the most stable physical assets on the market. Even though this precious metal is solid, stock prices for gold mining companies are lower than usual. These undervalued share prices are exciting many investors, and they are taking advantage of this opportunity by purchasing gold mining stocks and ETF's. When a person invests in a mining company, as opposed to purchasing the actual metal, they are doing so to gain from the intrinsic value. An example of an undervalued stock with excellent growth potential is Cliffs Natural Resources Inc (NYSE:CLF).
A few hedge funds are still holding on to Cliffs Natural Resources even though their share price dropped significantly. In the second quarter, the stock price declined by 10%, and things are not looking to good for them at the present moment. Since the beginning of the year, the total value of the Cliff Natural stock price declined by 55%. Experts are blaming the lack of growth on the actual business model of the company. Cliffs Natural Resources mines iron ore and metallurgical coal, and these two metals are not necessarily in demand. The production of steel is not as active as it was in the past, so the decline of Cliffs Natural Resources Inc stock price was inevitable. None of these negatives were weighty enough to make every hedge fund dump this stock completely. For example, Renaissance Technologies still owns 3.85 million shares of this stock.
Cliffs Natural Resources Inc - CLF Stock Chart Technical Analysis for 09-14-15