Best Value Gold Stocks; Equinox Gold Corp. EQX), 5, 09, 1, 5; Dundee Precious Metals Inc. Many also choose to invest in gold stocks for greater diversification. Investing in shares of companies that mine, refine and trade gold is a much simpler proposition than buying physical gold.
Since this means buying the shares of gold mining companies, you can invest using your brokerage account. Buying shares of companies in mining, refining, or other aspects of the gold production business is one way to play. Around 300 of these companies, also known as mining companies, are listed on major stock exchanges. Its stock prices generally reflect the movement of the metal itself.
However, stock growth and profitability depend on the company's expected future profits, not just the value of gold, notes the World Gold Council, an industry trading group. While you may be aware of the types of physical gold you can invest in, such as gold jewelry or gold bars such as coins and bars, the types of gold stocks and exchange-traded funds (ETFs) available may be more unknown to you. Among the hedge funds tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder of Royal Gold, Inc. You can decide to invest money in gold stocks with at least a portion of your portfolio can help you meet your diversification goals.
Investing in physical gold can be a challenge for investors who are more used to trading stocks and bonds online. Others may decide that investing in gold stocks allows them to reap the financial benefits associated with gold without the risks of physical property. Investing in gold ETFs and mutual funds can provide you with exposure to the long-term stability of gold while offering more liquidity than physical gold and more diversification than individual gold stocks. Investing is inherently risky, including investing in gold stocks, so be prepared for potential losses that could occur.
If you had invested in Netflix when the company was first recommended to you, your investment would have risen by more than 21,000%. Investors who want to expose themselves to investing in gold should check out some of the best stocks in the industry. Of all the forms of investing in gold, the riskiest is trading futures or options contracts, a form of speculative investment.