If you do not invest in gold stocks, then you are missing out on the opportunities bestowed upon you by the amazing gold stock companies. Instead of purchasing gold bars and jewelry, think different to do things differently. Wait, are you saying you want to invest in mining companies instead?
Even though you will be doing things a little differently, you will be causing your investment portfolio more harm than good. We are telling you to forgo investing in mining companies, as we have our reasons:
- Mining opportunities are available in countries with increased political risk
- The lack of skilled workers forces these countries to hire employees at a high cost
- It can take a mining company years to see even one speck of gold from the barren land
- Machinery malfunctions often
- The price of fuel influences the price of gold
Do you want to put your livelihood at risk by investing in mining companies whose future is always dangling by a thread? Or do you want a sure shot way to make money by investing in gold? Now, you can ensure by investing in one of these three gold stock companies:
Franco-Nevada Corporation finances the building of gold mines in return for receiving an undisclosed percentage of the production. Recently, the company financed a mining company, stating in the contract that they would receive sixty-eight percent of the mine’s production of gold and silver.
The mine produced twelve million ounces of silver and 720,000 ounces of gold. Do you know how much the company gained? They received a remarkable forty percent of the entire production, and for the cheap price of $400, and that is $4 per ounce of silver and gold. By investing with Franco-Nevada Corporation, you would receive a steady cash flow, without the risk.
2.Central Fund of Canada Limited
The Central Fund of Canada Limited is in the possession of physical silver and gold, having stored 1.7 million of gold (worth a whopping $2.5 billion) and seventy-seven million ounces of silver (worth an astounding $1.5 billion). The stock trades at an almost nine percent discount to the underlying value of silver and gold. By investing with the Central Fund of Canada Limited, you can see your return increase by ten percent.
3.The ETF Route
If you do not want to invest in an individual company, you can choose to take the ETF route. You can invest in iShares S&P TSX Global Gold Index Funds for instance. It provides a market cap of over $500 million and trades daily on an average amount of 400, 000 shares. The only downside to taking the ETF route is that three companies make up forty percent of the entire assets.
If you do not have expertise in investing with gold mining companies directly, these three types of stock will do well for you economically. If you are comfortable sticking to physical gold, that is good too.