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Buy Gold Now - How and why to buy gold

Buy Gold Now: Why should you buy gold? How do you buy gold? Investment expert Shayne McGuire explains how to profit from this precious metal and how buying gold can protect you from financial risk. Read more about Buy Gold Now >

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Gold, Silver & Platinum Stocks

Once you have built up a core position of physical bullion you may decide to turn your attention towards precious metal mining stocks. Shares of the miners which explore for, develop and produce gold, silver and platinum usually offer leverage to the underlying price of the metals themselves. High-quality stocks can boost your returns by a factor of 2x to 10x for the following reasons:

1) Current production becomes more profitable as bullion prices increase, justifying a higher stock price, and;

2) Reserves still in the ground become more valuable. With miners often having reserves of ten times the annual production rate, it’s pretty easy to extrapolate the total profit increase from a rise in the price of precious metals.

But mining stocks also bring with them increased volatility when compared to the price of gold, silver or platinum in isolation. There are also large differences in volatility between different types of stocks, for example, when comparing small exploration companies to large, established producers.

Gold, Silver and Platinum Mining Stocks in Canada

If you want to buy precious metal mining stocks, Canada is the place to be. Canada is the world’s largest exporter of minerals and this specialisation means that it is a major focus of investors interested in precious metals - 60% of all public mining companies in the world are listed on the Toronto and Toronto Venture exchanges. Of the 4,297 companies listed on these Canadian exchanges, half are mining stocks and 13% are oil and gas companies.

An Added Advantage by Buying in Canada

The premise of this website is the US Dollar and the British Pound will continue to fall in value due to the prolific money printing and deficit spending of the U.S. and U.K. governments. By purchasing precious metal stocks denominated in Canadian dollars, you are protecting your investments against the fall in the dollar and pound. The same is true when purchasing miners on the Australian exchange listed in Australian dollars. In both cases the exchange rate may move against you if the dollar or pound reverse course and become strong currencies once again. Your approach will thus depend on your own outlook for the future of the dollar and the pound.

Click here for a selection of leading gold, silver and platinum stocks, mutual funds and ETFs >

Click here for The 8 P's of Resource Stock Evaluation by Casey Research

How to Pick Winning Stocks

If you are new to investing or perhaps wish to improve your stock picking skills, I recommend you take a look at William O'Neils book "How to Make Money in Stocks" and read about "Investors Business Daily" here. 300x250 Free Trial