Investing

9 Tips to Be Successful in Your Mining Investment

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!