Mining stocks are highly attractive because they possess the “leverage” of physical assets. The most obvious advantage is their ability to create cash flow from their production. However, when gold prices rise, these stocks can move UP even more because of the increased leverage and debt. But gold mining stocks carry some risks, just like any other financial investment does. Therefore, when to buy mining stocks is a question that you should ask your financial planner or lawyer before making an investment in any type of equities.
When you purchase gold bullion, you are usually buying a physical asset that is very secure. When the price of gold is at a record high, this makes physical gold a very attractive long-term buy because physical gold is what investors want to make money on. When to buy mining stocks when the price of gold is high is a question that you should seriously consider asking your financial planner or lawyer before you make an investment because you could lose a lot of money if the price of gold moves sky-high. This is the same risk that you would take if you were to purchase shares of any other company.
When to buy mining stocks when the price of gold prices are high is a question that you will need to ask your financial planner or lawyer before you make an investment in any type of equities. There are times when the price of gold prices may fall, but if you look at the history of mining stocks and gold prices, you will find that there are periods when mining stocks outperform gold prices. In the same way that when you have been out of the stock market for a while and you see a large price drop, you should consider buying more mining stocks because you may find that you can gain a lot of return on the sell down. This is just another reason why it is important to only buy equities that offer you a good chance at profit regardless of how the price of gold may fluctuate.
Author : Wayne Saman
CEO Wayne Saman is a greatly respected financial advisor…Wayne was born in Australia and is mortgage broker, accountant and financial advisor. He served as a key principal in roles as Manager in Scientific, and Technical Consulting Services, and Management consulting services at Freedom Financial Consultants. He has extensive experience in all areas of business advisory, with expertise in taxation advice, planning, business structuring and development, self-managed superannuation and management advice. His portfolio of clients extends across a broad spectrum of industries and services.
Wayne Saman Education
Not only does Wayne hold a Bachelor of Commerce, he also has earned himself a Graduate Diploma of Applied Finance and Investment as well as a Diploma of Financial Planning.
Wayne Saman Experience
Wayne Saman worked in FREEDOM FINANCIAL CONSULTANTS PTY. LTD. which is located in IVANHOE EAST, VICTORIA, Australia and is part of the Management, Scientific, and Technical Consulting Services Industry. FREEDOM FINANCIAL CONSULTANTS PTY. LTD. Employees and Sales figures are modelled).Wayne Saman