Are you looking to invest in gold? Well this may be one of the most difficult industries for one to venture in. This is because one you need to have enough equity in order to be able to make any profits. For this reason, you will find that this is an industry that has been set aside for the rich and wealthy people in the community. However, with the best junior gold stocks the average person can also get a piece of this precious metal.
Understanding the best junior Gold stocks
This kind of investment provides a solution to investors who are ready to explore the increase in prices of gold over a period of time via shares. This means that junior gold stocks companies are basically small companies that are in the initial stages of commercial gold production process or just at the exploratory stage.
Investing via junior Gold companies
To invest in the best junior Gold Stocks, it is best for one to buy the shares of a company in its inception stages. As risky as it may sound, the best thing is that the shares will be sold at cheap rate to the initial shareholders and with time they will grow as the equity of the company increases. The rise or fall of the price of gold per ounce will also directly affect the shares either negatively or positively. With commercial production and the mineralization of this precious metal the junior companies will increase the values of their product which will directly translate into profit for their shareholders. As every business or investment venture is a risk, I personally would advocate for the best junior gold stocks investments as the risks associated with it are fairly low.
Finding the Best Gold Stocks Companies to invest in
The next question would be how do I find the best company to invest in? For this the answer is fairly simple. With technology everything has been quite simplified for us. For instance all you need is to do a little research and you will find that there are top 10 lists of the best junior gold stocks companies that are released yearly. In the year 2012 the market leader is the continental gold limited with over 9 gold projects in Columbia. This company is the followed by the Chesapeake Gold corps and silver project, the company has a 26,000 meter drill program. It is depicted that this program produces an average of 759,000 ounces of gold annually. This are just but the top 2 companies, with proper revisions of the list one will be able to find the best junior gold stocks company that will work for their betterment.
For a first time investor, there are a few factors that one has to look for in a company before making a financial commitment. They include the capital structure, projects undertaken, takeover candidates, track records of the management teams, technical catalysts and so much more. With all this factors taken into consideration, you will be on your way to joining the league of gold stocks investors.
To secure future better and brighter for you and your children, you have to invest in one thing or the other. Since time in memorial, one of the best and popular investments one can make is gold. Of all the other precious metals and even the currency itself, gold provides a cushion that one can fall back on in times of crisis. The best thing is that with technology comes an easier way to learn and keep up with the gold prices.
Advantages of Gold as an Investment
Every sane investment has pros and cons, but personally I think in Gold you will find that the risks are fairly low. To begin with, this is a long term investment as gold in itself is timeless and its demand is actually higher than the world’s supply. This assures you that there will always be a market for your gold products. This metal is also malleable making it easy to be sold and transformed into various forms. Gold is also considered indestructible and can be easily transformed from one place to the other. Unlike all the other investments that depreciate with age, gold actually does the opposite and appreciates as it gets older. Finally and best of all gold can be used as a currency against which the value of other objects can be assessed , this means that even in time of inflation gold will still maintain its value.
How to invest in Gold
Now that the importance of a gold investment has been established, next I’ll walk to you through the simple steps that you need in order to become a gold investor. As earlier said, one of the best ways to learn about the market trends for this valued commodity is by going through the top 10 gold stocks lists that are published yearly. For instance in the year 2012, the gold crisis in Europe and the strength of the US dollar the chairman of the gold royalty company targeted the price of gold to be a little over $1,500 to $1,700 per ounce. At the same time another gold enthusiast Jim Sinclair values this precious commodity at $1,700 to $2,100 per ounce in 2012. This list will therefore give you a sense of what to expect when it comes to the buying and selling of gold.
The list of gold stocks will also educate you more on buying the purest nuggets of gold. This also includes how to buy gold in its cheapest form and add its value by making it pure and it into more marketable forms such as jewelry. This list is compiled by gold stock analysts that follow gold prices very keenly.
Contrary to the belief that gold investment is only let to the rich, I believe it’s all about knowing which strings to pull and how. After you are able to save up and buy your first few ounces of gold, you can take time to watch the market and sell when the prices of gold hit the roof. This way you will make up more capital that will enable you to build up more capital to make even bigger investment. With proper research, you will be able to take up a loan and build a better and brighter future with gold investments.
Here is my list of gold stocks that you must own in 2013
Barrick Gold (ABX)
Compañia de Minas Beunaventura(BVN)
When I started investing in the stock market I never used a book to learn from and I was so very wrong. A couple of wrong moves and I was raking in huge losses. Now, in hindsight I should have used a couple of books to start with.
In my view you need to get your basics right initially and then start investing.
A couple of things that the books would have taught me are :
Risk taking ability – When I started investing I was never what a risk profile was and how to understand your taking ability. In hindsight, I know that I should have done that basic introspection as to how much of risk taking ability I have and how much of losses can I withstand.
Asset Allocation : All I wanted to was making huge gobs of money in the stock market. Asset allocation was not even a concept in my mind. So all my money went into the stock market without a thought. Of course I invested in the most buzzing stock of the day and boom! I lost almost every penny I invested in that stock. Wish I had read a book about stock market. I would have known about asset allocation. I would have understood the classes of stocks. I would have understood the Fundamental analysis as well as technical analysis.
How the stock market works: I never gave a damn about this. I knew that I had to invest and make money. How the index is calculated and how a particular stock that I had selected was not part of the index. Never mind , after this initial fiasco I started finding gems in books and I read all sorts of books on investing. I can tell that did not make a million however I make a decent amount of money in the stock market to buy some really cool gadgets for myself and nice gifts for my wife.
Oh and one more thing that I never absolutely cared about was the emergency fund thing. I always assumed that I will have my paycheck every month and that will last forever. After reading the book on investing, the first thing that is preached is to have an emergency fund. Very good advice and that is the one I have acted on. I now have about seven months salary stashed in a bank account as the emergency fund.
Again here is my list of two basic books which I think are very good and give you the basic stuff to start reading. These are Kindle editions and these are short and to the point, so make sure that you download and read.
Stock market for Beginners book by John Border.
A very good book and written in a concise crisp manner. You should buy that given the price and enjoy the read. It will help you understand the basics and hopefully get you started on the right path.
A beginners basic guide to stock market investing : Written by Evan J. Houpt this book is very conversational and literally talks to you page after page. Good insight into the psycgology of an investor and I like the gem in the end which tells you about the IPO’s . Buy it here