Category: Investing

Gold production is an industry more people should be buying stock in. Mining and other companies that focus on the production of gold are great to invest in because they’re not as directly affected by the price of gold as if you were to invest in gold itself. “Gold saw a rocky time in price value in 2018, but quickly bounced back in the final weeks before 2019, with some gold mining companies seeing significant gains in stock” – says Well Hello CEO Mike Malkavich, an industrious CEO and gold investor. In 2019, gold mining companies have the highest potential to The value of gold continues to rise above the cost of production for gold mining companies, allowing profits to scale up.

If you’re interested in investing in some gold mining companies, here are some you should consider.

Barrick Gold

Barrick Gold is merging with Newmont Mining, after already merging with Randgold Resources of South Africa, to create the largest gold-producing company in the world. Doing so makes them more stable in the market, and hold better-quality earnings to deliver to their investors. The stock-for-stock transaction is worth $10 billion and will be called Newmont Goldcorp, making it an exciting time to invest in Barrick Gold.

AngloGold Ashanti Ltd.

Being the third-largest gold mining company in the world, AngloGold Ashanti Ltd. is a South African company formed by the merging of AngloGold Limited and Ashanti Goldfields Company Limited in 2004. This company promises to show more significant gains than they saw for the month of January in 2018 this year and is one to keep an eye on.

Franco Nevada

If you take a look at history, Franco Nevada is one of the top performing gold stocks of all time. Since their IPO of over a decade ago, Franco Nevada has returned 400% to its investors while outperforming the price of gold. They’re a gold streaming/royalty company rather a mining company themselves, meaning they finance other companies’ mines. This company is also completely debt-free, so I’d highly recommend investing in them.

Sandstorm Gold

Another gold streaming/royalty company to consider is Sandstorm Gold, and while they’re not on the same level as Franco Nevada, they have more upside potential and is also debt-free, with lots of growth potential. Sandstorm Gold also has a stake in the Hot Maden gold development project in Turkey, which is expected to be one of the most profitable mines in the world. If all goes well, this could make for a substantial outsized positive impact on Sandstorm and double their cash flow.

Kinross Gold Corp.

If you’re on the lookout for a company on the come-up, Kinross Gold Corp. of Ontario, Canada is an excellent choice. They oversee mining operations in six different countries, and the company is continuously growing. Kinross expects to open multiple new mining operations to begin to produce ore in 2019.

Newmont Mining Corp.

Again, as previously mentioned, Newmont Mining Corp. is forming the world’s largest gold mining company with Barrick Gold, but it has a rich history of its own. It’s been around for almost 100 years, and it’s the only gold mining company listed in the S&P 500. Investing in this gold mining company

Kirkland Lake Gold

Although lesser-known than other gold mining companies, Kirkland Lake Gold is an underrated company you should invest in. With four gold-producing mines in Canada and Australia, Kirkland Lake Gold is a company growing at an astounding pace. The company has plans to exceed its record-high production of 596,405 ounces of gold, and their capital expenditures are expected to peak in 2019. This will allow for greater cash flow that they can give back to shareholders as higher dividends.

While investing in mining stocks isn’t quite as popular as investing in tech, it still accounts for over 45% of the world GDP – mostly because natural resources are essential to the human experience.

Investing your money in a steady stock like mining is a great way for an average Joe like you to make some decent cash – especially in 2019. Let’s jump in and find out why mining stocks are so hot this year.

Shiny Objects

Since the beginning of time human have been obsessed with shiny objects. Kings emassed vaults of golden objects, pirates scourged the seas in search of jewels and assorted treasures – hell, even Jesus of Nazareth got a few fine metals for his birthday.

Even today, men and women all over the world use jewelry to displaying status, bring attention to victory, or in the form of self-expression. And thanks to more people gaining access to these fine items, the stocks just keep getting better.

Investing in gold-mining companies is almost always a safe bet for this reason. Gold-mining is a practice that can be traced back to 7000 years ago, so I don’t think it’s going away any time soon.

Steel

It should come as no surprise to you that steel is one of the most widely used metals in the world. Steel is perfect for building structures large and small, crafting knives, sculptures, tools, and just about anything else you can imagine.

Last year steel stocks gained an 8.9% increase in value over the last half of the year, and the streak hasn’t slowed down much. See, that’s the thing about mining stocks – you always know when they’re on the upwards trajectory, and you always know when they’re on the downward.

Steel isn’t the only metal that shifts in value, affecting the stock price for the mining companies. Aluminum and copper are good examples of metals that aren’t exactly stationary. And while steel is the most stable out of the three, it’s not immune to dips in value.

With construction companies expanding and repairing every city and road in the country, you know the price of mining stocks is about to go right up with it.

Deregulation

I don’t know if anybody out there has heard of Donald Trump, but he is the sitting president of the United States at the moment, and while the average citizen hates him – the mining companies love him. I don’t know if it’s the desire to turn America back into one big coal mine, or the money these mining companies are (allegedly) paying him, but Donnie has done away with a lot of the rules set in place by the previous president.

The Internet Privacy Rule, Dental Mercury Waste Rule, and Net Neutrality are among the list of repealed regulations issued by President Trump. Another one that he is particularly proud of is the coal mining regulation – the same regulation that kept most coal mining companies out of the U.S.

With this new change has come an opportunity for new investors, much like yourself, to start making serious money by investing in mining stocks. Coal mining companies are popping up all over the U.S. now that these regulations have been repealed, so start thinking about which ones you want to invest in. There’s no telling how long this presidency is going to last – or its changes for that matter. Hop on and ride the wave while you can!

There are an insane amount of variables to think about when committing your funds to an investment. Even a $20 investment must be carefully thought-out and painstakingly reviewed if you want to make some real money.

Investing in mining stocks isn’t much different than investing in something like soap or agriculture. It provides a recourse humans cannot live without – metal. In fact, mining stocks in 2018 made up over 45% of the global GDP, so I think it’s safe to say they’re doing pretty well. Let’s tackle some of the pros and cons of investing in a mining company.

Gold

Gold is a very unique metal, in terms of investment characteristics. I mean, it’s literally gold – the thing we literally use as the benchmark for value on the planet Earth.

In the world of mining stocks, gold mining seems to be a very safe bet for anybody trying to get their foot in the door. It’s considered a good first step for people that are trying their luck at investing in stocks for one reason; people aren’t going to get tired of shiny objects any time soon.

Another great pro for gold mining is its ability to gain value when everything else is doing poorly. You see, investors seem to like flocking to gold when things like stocks are tanking. Because it is literally value itself, gold tends to increase in value when most other stocks are on a downward spiral. That’s why all those goddamned ‘cash for cold’ commercials started airing when the down took a plummet in the recession.

Cobalt

Out of almost every metal on the market, cobalt is, without a doubt, one of the most unpredictable. Its value will fluctuate up and down depending on the day of the week, and that’s why so many people are interested in it.

On top of that – cobalt, lithium, and graphite are all predicted to rise in value in 2019 because of our new and intense desire for batteries. Phones, laptops, and even cars already run on these precious metals, and in the coming years, the price is just going to keep going up thanks to our ground-breaking innovations in hardware and production all over the globe.

Some people will buy stocks in cobalt and sell them the next day for a half-decent profit, and I think that’s the way to go. If you’re a real high-roller and you’ve got a little extra cheddar to spend, you should invest in a few cobalt companies and sell as soon as it goes back up, just like it always does.

Platinum

We all know how the order of value goes – bronze, silver, and gold. It’s a basic tier of value we have created over a long time, but it seems to be missing something; platinum.

You might know it as the most precious metal on the planet, but not much else other than that. Something you probably didn’t know about platinum is that it’s not very economically efficient to mine. Platinum is mostly found in areas that are very difficult to mine – like the desert. In Africa lies 70% of the worlds platinum deposits.

And with the 15% of it in the Russian snow, and another 15% scattered across the globe, platinum has a minimal global availability. That’s why you should invest in a few old platinum mining companies that have been there since England left. They are the ones with the means to collect all of that precious metal.

There is no better way than to make a ton of cash than to make some smart investments in stocks. A lot of people compare investing in the stock market to gambling, but if you’re making smart and educated decisions about where you’re putting your money, then it’s nothing like gambling whatsoever.

While a lot of people are investing in stocks like Apple and Amazon, there is plenty of money to be made by investing in an older industry: mining.

Investing in mining is something that is overlooked in favor of hipper, sexier stocks, but you can make just as much money – if not more – by investing in mining.

You do need to know what you’re doing though! Here are a few tips on how to be successful in your mining investments!

Politically Vulnerable

Keep in mind that mining is a politically vulnerable stock. Because a lot of mining happens all over the world in different countries with different political climates, you can’t be sure that investing in Venezuela will have a high payout.

While some politically vulnerable areas might seem like viable choices because their prices are low or because that area has been known to have a high output of whatever your chosen company is mining, it’s never a good idea to invest in a company whose operations are based in a company that’s dealing with political unrest.

Consider ETFs (Gold and Silver)

Investing in precious metals like gold and silver is a great way to diversify your portfolio and to help you reach your investment goals especially through the investing in ETFs.

Think like an environmentalist

When it comes to choosing the right company to invest in, you need to think like an environmentalist! Do some research into what makes particular regions good for mining gold, silver, oil, what have you! Then invest in companies that have operations in regions with similar characteristics.

It’s also a smart idea to invest in established areas that are already known to produce product.

Don’t believe the hype

When it comes to stock, there can be a certain amount of hype surrounding a company or what a company is mining for. While it’s always smart to keep up on trends, you shouldn’t believe the hype if you have no reason to!

Make sure you do research and consult an expert before investing potentially volatile stocks.

gold stocks > gold bullion

When it comes to reliability, gold bullion is not the stock for you. It’s always a much better idea to invest in gold itself than bullion!

Consider stocks that are already producing

While you might want to get in while the share price is low, it may be a bad idea to invest in stocks that aren’t already producing. It may be more expensive to invest in a stock that’s already on the upswing, but it could be more beneficial in the long run.

Low Debt

While a company may be producing a lot of product on paper, make sure that they don’t have more debt than a newly graduated medical student!

It’s always a good idea to invest in something, but just what to invest in? Well, that’s up to you, but one of the best industries to invest in right now is mining. Whether it be gold, silver, or any other material, mining is a big business and an opportunity to invest in something profitable. If you’re looking to invest in mining, here are a few tips on what you should look out for and what you need to know to make the wisest decisions.

Know the two types of stocks

In mining, there are two distinct groups of stock, which are major and junior stocks. They’re exactly what they sound like, where majors are companies that are well-capitalized with a long history, often world-spreading operations with a slow and steady cash flow, while juniors tend to have little capitals, a short history, and high aspirations for huge returns in the future.

One thing you should be aware of when it comes to junior mining stocks is that there’s always the possibility of failure. Many junior companies receive this fate, unfortunately, but at the same time there are those that achieve success, and a major becomes interested and pay a premium to absorb the company, leading to decent returns to investors all year-round.

Understand the risks and rewards

Since both types of mining companies are different, they have different risks and rewards you should consider when investing. Major companies, for example, are the sum of all their deposits being staked or mined plus their history, while junior stocks depend on the results of its feasibility studies.

What does this mean?

The contents of any major mining company’s single deposit that is being staked or mined aren’t likely to shake its stock value much, but if a feasibility study is positive for a junior mining company, they see its value shoot up, but if it is negative, then the opposite will happen. In major mining companies, a change in market value for a mineral of a more significant percentage of deposits has a larger effect than a new or failed deposit, and junior mining stocks don’t typically mine a feasible deposit to the end, but instead either sell the deposit, or themselves, to a major and move on to find another. As such, the biggest risks and rewards lie with junior mining companies.

Choose how you invest

With this information, you should be able to choose what type of company you want to invest in. If you’re looking for a company with a lot of potential and don’t mind being patient in seeing returns, junior mining companies are great for their potential to offer a lot in the right market and for their risk capital, while major mining companies are lower-risk and have the potential for dividends with some appreciation. Both stocks, however, follow a business model that is based on using up all the resources they own in the ground. But because they aren’t aware just how much resources they have in a given deposit, the value of a mining stock roughly follows the market value of its reserves, paying a premium to companies with a long history of providing those reserves to the market.