Buy Gold Mining Stock
This is a more indirect way to get in on the proverbial gold rush. Instead of directly buying gold or gold ETFs, you could invest in the companies mining the gold. The reason why investors might choose to do this is because it offers more potential for growth than physical gold. One gram of gold is going to remain a gramwhether ten, fifty, or a hundred years go by. A company, however, has the potential for growthand so does its stock price. You can also own gold mining stock by investing in a mutual fund that includes this kind of stock.
However, choosing this option means youll have to deal with the risks involved in buying stock, and stocks are notoriously volatile. Your investment will be vulnerable to the management of the company, and if youre interested in sustainable investments, then mining stock might not be the right pick for you.
Streaming And Royalty Companies
For most investors, buying stock in a streaming and royalty company is probably the best all-around option for investing in gold. These companies provide miners with cash up front for the right to buy gold and other metals from specific mines at reduced rates in the future. They are like specialty finance companies that get paid in gold, allowing them to avoid many of the headaches and risks associated with running a mine.
Benefits of such companies includes widely diversified portfolios, contractually built-in low prices that lead to wide in good years and bad, and exposure to gold price changes . That said, none of the major streaming companies has a pure gold portfolio, with silver the most common added exposure. So you’ll need to do a little homework to fully understand what commodity exposures you’ll get from your investment. And while streaming companies avoid many of the risks of running a mine, they don’t completely sidestep them: If a mine isn’t producing any gold, there’s nothing for a streaming company to buy.
Where Does Demand For Gold Come From
The largest demand industry by far is jewelry, which accounts for around 50% of gold demand. Another 40% comes from direct physical investment in gold, including that used to create coins, bullion, medals, and gold bars.
Investors in physical gold include individuals, central banks, and, more recently, exchange-traded funds that purchase gold on behalf of others. Gold is often viewed as a safe-haven investment. If paper money were to suddenly become worthless, the world would have to fall back on something of value to facilitate trade. This is one of the reasons that investors tend to push up the price of gold when financial markets are volatile.
Since gold is a good conductor of electricity, the remaining demand for gold comes from industry, for use in things such as dentistry, heat shields, and tech gadgets.
Also Check: What Is Goodrx Gold Card
Picking The Best Gold Stocks
The best gold mining companies have low cost structures, manageable debt levels, and limited exposure to risky mining projects. Gold streaming companies generally offer the highest return potential among gold-focused investment options because they are well-positioned to benefit from higher gold prices without assuming the risks associated with mining physical gold.
Investors who dont want to be tasked with identifying the best individual gold mining stocks can instead buy shares in gold exchange-traded funds, which are more convenient and cost-effective options for investing in gold stocks. A gold ETF offers broad exposure to the sector by owning either shares of gold companies or physical gold. Because of the wide availability of gold stocks and ETFs, you don’t have to be a stock-picking guru to participate in the gold industry’s upside.
Is Gold A Good Investment
Many people view gold as a very sound and profitable investment. Unlike some other investment options, gold has been historically known to maintain its value. Since there are limited quantities of gold on Earth, it is a highly sought-after resource.
Gold is also very easy to convert into cash. You can sell your investment with relative ease anywhere around the world for fast cash. This is obviously not the case with many other physical investments you may make.
Investing in gold along with other more traditional investments, such as stocks, is a good way to diversify your portfolio and protect you against stock market crashes. When the stock market is down, the price of gold typically increases, so it can provide you with protection in the event your other investments lose much of their value.
There is, and will likely continue to be, high demand for gold. It is used for everything from jewelry to electronics. Knowing that gold will continue to be in high demand can help you feel confident that its value will stay stable or rise.
Don’t Miss: How Much Is Brick Of Gold
Buying Actual Physical Gold
Last but not the least is the option of buying and selling physical gold. You can get them in the forms:
- Gold bars The most expensive and hardest to obtain. These gold bars typically range in size and weight depending on the cast or minting process used.
- Gold coins Easier to obtain and also relatively easier to liquidate compared to gold bars.
- Jewellery Perhaps the most common practice or option for investing in gold. Since its easy to purchase, gold jewellery is a popular choice for people wanting to invest in gold.
What Are Some Advantages To Purchasing Gold Bars
Gold bars have more advantages for those who own them. For example, gold bars can be privately made. They can also be easy to store in safe deposit boxes or security boxes at home. Plus, you can purchase more ounces of gold for lesser premiums. Best of all, gold bars will help you build up your portfolio fairly quickly. It will also provide your portfolio with some diversity. Finally, you can be able to sell them at a price when you are ready to do so. If you buy low, you can sell high when the time is right. And you can do it over and over again if you have the money.
Don’t Miss: 3 Month Xbox Live Cost
How Is The Price Of Gold Determined
Gold is a commodity that trades based on supply and demand. The interplay between supply and demand ultimately determines what the spot price of gold is at any given time.
The demand for jewelry is fairly constant, though economic downturns do, obviously, lead to some temporary reductions in demand from this industry. The demand from investors, including central banks, however, tends to inversely track the economy and investor sentiment. When investors are worried about the economy, they often buy gold, and based on the increase in demand, push its price higher. You can keep track of gold’s ups and downs at the website of the World Gold Council, an industry trade group backed by some of the largest gold miners in the world.
It Doesnt Provide An Income
Unlike a cash savings account, gold doesnt pay interest or unlike a stocks and shares investment it doesnt pay any dividends. The aim is that gold providers long-term returns on the value of the capital. Although this may not be the case and the value of your gold will depend upon the demand and availability of supply at any single point in time.
Read Also: How Many Grams Equal An Ounce Of Gold
B2gold Completes The Sale Of Burkina Faso Projects
B2Gold Corp. is pleased to announce that it has completed the sale of its 81% interest in the Kiaka gold project located in Burkina Faso to West African Resources Limited . Pursuant to the terms of the Kiaka Transaction, on closing B2Gold received a cash payment of US$22.5 million , 22,190,508 ordinary shares of WAF , and a 2.7% net smelter return royalty interest on the first 2,500,000 ounces of gold produced at the Kiaka Project and thereafter a 0.45% NSR royalty interest on the next 1,500,000 ounces of gold produced. B2Gold will also receive an additional payment of US$45 million payable on the earlier of commencement of construction at the Kiaka Project , completion of a positive feasibility study at the Kiaka Project, and October 25, 2022 . The Additional Payment will be paid in cash or WAF Shares, at B2Gold’s option but subject to any required WAF shareholder approval to issue the WAF Shares.
Concurrently with the closing of the Kiaka Project, B2Gold also completed the sale of its 90% interest in the Toega gold project located in Burkina Faso to WAF . Pursuant to the terms of the Toega Transaction, on closing B2Gold received a cash payment of $9,000,000 , and a 2.7% NSR royalty interest on the first 1,500,000 ounces of gold produced at the Toega Project until such time as the royalty payments total US$22,500,000 and thereafter a 0.45% NSR royalty interest.
About B2Gold Corp.
ON BEHALF OF B2GOLD CORP. ” Clive T. Johnson ”
Factor #: The Us Dollar
One word, dollar-denominated. Thats why gold prices and the US dollar has a total opposite relationship. The gold price will go up when the US dollar value weakens and vice versa. In a way, more will buy gold when the US dollar is weaker .
For example, do you guys remember when Donald Trump won the election back in 2016? Yup, at the time, the gold price fell back 5% but – the US dollar rebounds!
Recommended Reading: What Dentist Does Gold Teeth
Investing In Gold With Jewelry
A lot of first-time gold investors decide to start their investments by buying jewelry. Jewelry is very easy to acquire but can also be very difficult to trade in. You need to ensure that you are getting gold that is at least 14 karats. Most jewelry will also have a pretty high markup due to the fact they are pieces of art not investment items.
Gold jewelry rarely reaches 24 karats because the gold at that point is too soft. You dont want jewelry that will break too easily. When buying jewelry for investing in gold it is often done by looking for some of the most expensive pieces. Besides having a high karat count, you also want it to appear nice.
Why Is Gold Valuable
In ancient times, gold’s malleability and luster led to its use in jewelry and early coins. It was also hard to dig gold out of the ground — and the more difficult something is to obtain, the higher it is valued.
Over time, humans began using the precious metal as a way to facilitate trade and accumulate and store wealth. In fact, early paper currencies were generally backed by gold, with every printed bill corresponding to an amount of gold held in a vault somewhere for which it could, technically, be exchanged . This approach to paper money lasted well into the 20th century. Nowadays, modern currencies are largely fiat currencies, so the link between gold and paper money has long been broken. However, people still love the yellow metal.
Don’t Miss: Are Gold’s Gym Treadmills Any Good
What Is Digital Gold
Digital Gold is an instrument that allows you to buy and sell pure gold in digital form at current market prices. This is not a deposit or a financial product. The gold you buy is backed by genuine gold and is held in a certified depository in your name. You can then exchange your digital gold for coins, bars and jewelry at any time and take it with you. For that you just have to pay the making charge. Digital gold is considered very easy and convenient for the hi-tech generation. No worries about safety in keeping it. This is the reason why digital gold is becoming very popular nowadays.
Gold Certificates As An Investment
You can also opt to buy gold certificates. These are certificates that you own certain pieces of gold that are stored at a company. You dont need to worry about storing the gold and still have a gold investment. When buying gold certificates you need to be very careful to buy from a reliable backer. The number of companies that offer gold certificates is very limited.
You May Like: Does Kay Jewelers Sell Real Gold
Investing In Gold Vs Platinum And Palladium
We hand out awards as bronze, silver and gold with platinum reserved for the highest achievers. Of the four best-known precious metals platinum has always been the highest priced. Typically 20-30% more expensive than gold, platinum is the pinnacle of excellence in office awards and golfing trophies
except thats not the case any more.
Golds price overtook platinum in the aftermath of the financial crisis golds use as a safe-haven investment trumping the industrial metal platinum to top spot.
As the crisis deepened, platinums value shrunk farther. The industrial uses of platinum mainly as catalysts in cars dropped because people had less money to throw at expensive depreciating vehicles. Even when the financial crisis lost the worst of its effect and people were buying cars again, something even worse happened: dieselgate.
Platinum is used as a catalyst in diesel cars and if the entire automotive industry suddenly drops diesel in favor of gas then its going to hurt badly. Which is why the once king of metals is now languishing 30% below the price of gold. Languishing in third place.
Third place? Yes third, which brings us to a less well-known precious metal: palladium.
Does this make palladium a better investment than gold? Like gold, platinum and palladium come in bullion bar and coin formats so can be held as physical assets in an investment portfolio. But how has palladiums performance been to date and how does it look for the future?
How Much Should You Invest In Gold & Silver
None of the downsides listed above are intended to discourage you from investing in gold and silver.
But you do need to be fully aware of the risks if you do.
So how much should you invest in gold and/or silver?
Most experts recommend you hold somewhere between 5% and 10% of your investment portfolio in gold and silver.
That would include either or both bullion or gold-mining stocks and/or mutual funds.
Given the upside potential of the metals in a crisis, a 10% position can provide adequate insurance for the rest of your portfolio, should your financial assets fall in value.
The limited investment position will also serve to minimize any potential loss if the metals markets run against you.
Read Also: Price Of 18k Gold Per Gram
Drawbacks Of Physical Gold
- Expensive to hold. Storing gold at home carries enormous risks of theft or loss. Keeping it in a commercial facility incurs storage costs, often based on the size and value of the holdings . If you’re not using a professional storage facility, you’ll want to insure your gold, too another ongoing charge.
- Illiquid. Physical gold can’t be sold with a press of the button or a call to a broker. Even with dealers acting for you, a sale can get days or weeks to settle, plus you have to arrange for shipping.
- Does not produce income or profit. A $1,000 investment in bullion buys $1,000 period. Physical gold doesn’t generate interest or dividends. The only potential for appreciation is if there’s a jump in prices that lets you sell at a profit .
How To Buy Physical Gold
If you decide that investing in physical gold is the right move for you, here are some things to keep in mind.
1. Find a reputable dealer. From working with pushy salespeople to falling victim to scams, navigating the world of buying and selling gold can be sketchy. Sellers can inflate their products value, or use persuasion tactics to create a sense of urgency to buy immediately. Doing some homework ahead of time can help you avoid a bad investment.
You can use the National Futures Associations Background Affiliation Status Information Center to check on a firm or individuals background.
2. Watch out for fees. Gold dealers typically charge more than golds spot price, or the price at which gold trades on a commodities exchange. This premium typically consists of a dealers fee and manufacturing and distribution charges.
3. Find secure storage. People joke about burying gold for a reason: Its valuable, and because it’s a physical commodity, people may try to steal it. Its important to anticipate storing your gold somewhere safe, whether that is a literal safe or a safety deposit box at a bank. Storing gold safely can get expensive. Depending on their size, safety deposit boxes at a bank can run from $30 to a couple hundred dollars a year.
4. Consider purchasing insurance. Insurance is an additional cost of owning physical gold. If you purchase insurance, be sure your policy covers the exact type of asset you have.
You May Like: How Much Is 10k Gold Worth
Fabled Definition Drilling To The East Hits Near Surface Mineralization With 25781 G/t Ag Eq Over 120 Meters In Broader 37 Meter Zone
Fabled Silver Gold Corp. announces the results of surface diamond drilling from the upgraded 14,400 -meter drill program on the “Santa Maria” Property in Parral, Mexico
Peter J. Hawley, CEO and President, remarks, “Planned definition holes SM20-42 was designed to fill in a drill poor gap just to the west of the resources as seen below in Figure 1.
Figure 1 – Longitudinal View of Area of Current Drilling
SM20-42
Definition Diamond Drill Hole SM20-42 was drilled at a dip or angle of -69 degrees for a total drilled length of 221 meters and designed to hit the targeted zone at -200 meters below surface.
The hole was successful in intercepting 6 gold bearing zones of interest, see Figure 2, Table 1 and Photos 1, 2 and 3 below.
Figure 2 – Cross Section Diamond Drill Hole SM20-42
The first intercept of interest, which was near surface, began at 7.80 meters and returned 3.17 meters grading 142.70 Ag Eq with 0.49 g/t Au. This section also contained a higher-grade portion of 1.20 meters grading 257.81 g/t Ag Eq with 0.91 g/t Au.
See Figure 2 above, Table 1 and Photo 1 below.
– SM20-42 Drill Core
From 54.70 – 56.40 an oxidized quartz vein was intercepted, and the 1.70-meter vein reported 249.12 g/t Ag Eq with 0.43 g/t Au. See Figure 2 above, Table 1 and Photo 2 below.
– SM20-42 Drill Core
A weak breccia zone encountered from 140.10 – 141.00 returned 29.18 g/t Ag Eq with 0.40 g/t Au.
See Figure 2 above, Table 1 and Photo 3 below.
– SM20-42 Drill Core
|
Drill Hole |
