 Good day, fellow investors. As said in the previous video about my 2018 strategies, one strategy that you need to have as a hedge for whatever happens, especially if financial turmoil hits the global economy, is to own gold hedges. You can own gold in a physical way, however I prefer to own gold miners. Much more leverage, much lower necessary investment to get the benefits if gold prices increase. So let's see how can you approach gold miners for an all-weather portfolio perspective, how much should be allocated to such investments and what are the risk and rewards. This is the gold price since 1973, since gold has been de-packed from the dollar and you can see that in that time there are long periods where gold prices don't go anywhere or even decline, but there are also times like in the end of 1970s, 1980s where gold prices spike even 10 times or in the 2000s when that also happened. When investing in gold you have to also be expecting what happened from the 1980s, where gold prices went nowhere for 20 years. This is again something that can happen. However, if you own gold miners, even if in 20 years they explode, which they probably will, you will make 10, 20, 30, 50 times your money as it has been the case for those who invested, let's say, gold miners in 2001, 2002 or in 1975. So from a risk reward hedging perspective, it is extremely important to own gold miners because by selling them in case of financial turmoil you can buy whatever is left in the crisis later, rebalance accordingly. Nevertheless, you have to expect a lot of volatility. New month mining increased fivefold during the 2000s but also decreased 90% after 2011 and as gold prices fell. So you have to see how much can you weather, so you have to see what you own. Okay, if a gold miner that I own decreases 90%, what is the hit that will be for my portfolio? If you have 5% of your portfolio in gold miners and they fall 90%, you will lose 4%, 5% of it. So really have a similar relocation towards what can happen. And let's dig deeper into what can happen, what kind of gold miners there are so that you can better allocate your investments. When investing in gold miners, what they own under the ground is sometimes more important than what they own above the ground. Because you're buying the gold, you're buying the future now as a hedge. So Barrick Gold likes to see itself as the company with the largest gold reserves in the world. So they have 85 million ounces, which at current prices is much more than 100 billion. Given the 20 billion market capitalization, there is a lot of potential in such a company. However, when you look at gold miners and their presentations, they will always say what's best and what's working for them and omit some things. It's not lying, it's just omitting. For example, Barrick Gold here says that it has the highest reserves in the world, but it doesn't mention Polyus Gold. Polyus Gold is a company that has the highest life of mine, but also is the second largest gold reserve base company. Barrick you can see here is close to Polyus, but they don't mention Polyus. So this is another interesting company. Now it's again a bit expensive, but if you wait, if you're a patient, you can really buy those miners in the cheap. You don't have to invest now. You can invest over the next 10 years when those companies are cheap, so you invest a little bit now. If they become cheaper, you invest more. We have to always think that investing is not about what happens in the next three months. Investing is about building wealth over the next 40 years, because that is a sustainable way of investing, and that will make you well off. So really see about, okay, this is my portfolio location, be patient, things change a lot in the long term. If you just look at what happens every five years, then you will see that the volatility is huge. If you look at what happens in the next three months, it's very difficult and a lot of energy is spent for nothing. So really look at these gold mining investments from a long term perspective. From the net debt to EBITDA, Harmony Gold is the lowest one with the highest EBITDA. However, Harmony Gold has very high mining costs, which are again something to watch. So if the company has a lot of debt, then it's much more risky, especially if gold prices go down. If they don't have a lot of debt, then they can weather whatever happens. However, apart from that, it is very important to look at mining costs. And you can see here the mining cost curve, the cheapest producer are Polyus Gold, some Turkish miners. Then we have higher and higher cost producers up till the price of gold. Of course, if your producing costs are higher than the price of gold, you simply don't produce. Nevertheless, the higher the cost, the higher is the leverage, the minor the stock price will have the gold prices. The lower the producing costs, there will probably be a dividend. So there is more yield, immediate yield, there is more profit and there is more safety. So you have to see how it fits your portfolio. If you are a defensive investor who likes to get small yields and reinvest those yields over the long term, you buy a low cost producers with no debt. If you are more leveraged, if your portfolio is more oriented to really growth stocks, to really quickly gaining some returns, tech stocks or something like that, and you want to balance your portfolio accordingly, then you can buy high leveraged, high cost miners. If gold prices spike, you will get the same result and immediate protection to whatever happens in the other environment. Another thing to look at is low political risk or you don't want to see gold prices higher and then some government, I don't know, in Africa or in Greece or in Turkey or in Canada say, oh, we're going to raise gold taxes or we're going to confiscate your mine. So that's also something important to look at and something to be very well diversified. How much to allocate to gold miners? Three, four, five percent maximum, maximum 10 percent of your portfolio if you can weather that risk and rebalance accordingly. So I have described what can happen, what are the risk rewards, and now it's up to you to look at the other videos that we will discuss commodities and other sectors and see how that fits your old weather portfolio. It's all about your risk and reward. Looking forward to your comments, click like, don't forget to subscribe, and I'll see you in the next video.