Investing in gold mining stocks

mountain-gold-mineGiven the current instability and vulnerability of economies around the world, more individuals are now looking to invest in gold. Nowadays, gold is seen as the essential umbrella against the raging economic storm that threatens every individual’s financial stability.

Investing in gold serves to diversify a financial portfolio, and it is also a great hedge against an unstable economy. Of the different gold investments, gold bullion has seen an ever increasing demand. It is a known fact, though that gold bullion is an expensive gold investment. However, if you want a better alternative, gold-mining stocks are great for long-term investments too.

In recent years, it is observed that the prices of gold mining stocks are relatively cheaper than gold bullion. A number of reasons have been attributed to gold mining stocks’ poor performance. For one, gold exchange-traded fund, which is another convenient method to invest in gold, has grabbed investment money from mining stocks and has become the preferred gold substitute for most precious metal investors. Then, there are also inherent operating costs involved in mining that have taken away the much needed extra income of mining companies. Nonetheless, gold mining stocks are still worthy gold investments. And although these stocks are more volatile than gold bullion, choosing a stable and bigger mining company than small players in the industry will minimize the chances of losing out on your investment. Aside from the fact that gold mining stocks are a lot cheaper than gold bullion, another reason why you should put some of your money into this investment is that you also earn profit through dividends.

The bottom line is every gold investment involves some amount of risk. So before making any decisions, be sure to retain the services of a professional financial adviser to guide you through the process of investing. Weigh every option you have and make sure to not put than more than 10% of your money in a single type of gold investment. Learn to invest in gold wisely!

Should You Invest in Gold?

GoldvaultFor the past several years, gold has been continuously on the rise. This precious metal has been definitely shining and sparkling. And with many countries plagued with an unstable economy, gold continues to be on a meteoric rise. This is because many individuals now see gold as the best hedge against unstable economies and economic fluctuations.

With this trend you have been seeing, the question that keeps coming to your mind is “should I invest in gold?” Well, should you? If you base your decision on gold’s current performance, it definitely is high time to invest in gold. For the past decade, gold’s price is steadily increasing, and before it balloons to the $2000 an ounce mark, you need to start investing in it.

Experts always advise to create a diverse investment portfolio, so that aside from the usual investment in bonds and stocks, gold investments are a good and hefty addition to your portfolio. It should be a rule of thumb that an investor must not hold more than 10% to 15% of gold investments. The rationale behind this is the fact that gold, like any other investment, is also prone to price fluctuations and the economy. For example, if the dollar performs better, there is a tendency for the price of gold to go down. As well, the law of supply and demand can affect gold’s price.

Having said this, it is wise to choose the best way to invest in gold. There are indeed many ways to invest in gold, and your decision to put your money in a specific type of investment should depend on your purpose of investing. If you’re buying gold, but you’re not comfortable with keeping gold bullion and coins in your own safe deposit, then go for ETFs. Exchange traded funds (ETFs) are contracts that are supported by gold. However, if you’re more comfortable with looking at real sparkling gold, you can buy gold bars and/or coins.

Remember that investment in gold has its high points and low points, so be sure to consult a professional to weigh your options before making your move.

Investing in Different Types of Silver Coins

D Silver CoinsFor someone who’s a newbie in the silver coin investment scene, the numerous options available may be a bit overwhelming. Even experienced investors sometimes have doubts when they are presented with endless silver coin choices that come in various sizes, shapes, and features. Of course, different silver types have inherent features. And this being the case, there are silver coins that stand out above the others.

One of the most important silver secrets that you should keep in mind when you choose the silver coin you want to invest in is to align it to your purpose. Ask yourself about your reason for investing in silver coins. Are you in the silver market to buy and sell? Do you want silver coins as a hedge against inflation? Or are you a silver collector who wants to add coins to your personal collection and preserve its beauty?

Once you determine the purpose of your silver coin investment, you can choose from any of these:

American Silver Eagle – aside from being the most popular silver coin in the world, it is also the most trusted. These attributes of the Silver Eagle make it very easy to dispense and sell, so that it is highly suited for investors who are into buying and selling of silver coins.

Canadian Maple Leaf – although not as popular as the American Silver Eagle, this silver coin is famous of being the purest silver coin in the world.

Austrian Silver Philharmonic – aside from its purity, the Philharmonic silver coins are also popular because of its beauty. It is not only a good option for a silver coin investment, but this is also a sought-after coin among collectors.

Other great silver coins that you can invest in include the Chinese Silver Panda, the Australian Silver Kangaroos, the British Silver Brittanias, The Australian Silver Kookaburra, etc.