Should I invest in Bitcoin mining companies?

If you’re trying to get in on the crypto mining craze, then publicly traded bitcoin mining companies offer an easy way to do so. On the upside, you can make a return based on the profitability of mining bitcoin. Are there any reasons why you should pass up this opportunity? In this article, we’ll cover the basics of bitcoin mining stocks, and whether or not it’s a good idea to invest in them.

What is crypto mining?

Let’s begin by defining what crypto mining is. First, it’s important to remember that cryptocurrencies are decentralized; therefore, they aren’t issued through banks or governments like traditional currencies are. Instead, people mine coins with powerful computer hardware (known as “mining rigs”) using certain algorithms.

These algorithms run software known as mining pools, which allows miners to pool their computing power into one large group, rather than having to take on such huge costs individually. The more computational power your rig possesses, the faster you can find the solutions needed to solve complex math problems and verify transactions on the Bitcoin network.

Once solved, these problems allow for the release of new coins. When crypto miners solve the problem, they receive a reward in the form of a newly created block of bitcoins. This process repeats itself over time until the total supply, or market cap, reaches 21 million. At that point, miners will no longer be able to earn new coins, but existing ones will still continue to exist. Mined bitcoin will just come from network transaction fees at this point.

Why would I want to mine bitcoin?

For those who don’t know how crypto mining works, it may seem like there isn’t much of a reason to participate. After all, it seems like anyone could start mining at any given moment. However, while this is technically true, it doesn’t actually mean that every miner has access to the same amount of computing power. Some people have mining rigs capable of solving the kinds of difficult math problems necessary to generate new blocks. Others cannot. Therefore, if you’re interested in mining bitcoin, you need to buy the right equipment.

If you already own a computer, you might consider purchasing a graphics card specifically designed to mine cryptocurrency. There are also off-the-shelf mining rigs available. One popular option is a Genesis Mining ASIC miner. These units can be purchased directly from the manufacturer for anywhere between $500 and $3500. Of course, you’ll also have to pay for electricity and internet connectivity. While this is not an inexpensive endeavor, it does offer the potential for a high return on investment.

Is investing in crypto mining stocks better than investing in hardware?

There are two primary ways to invest in crypto mining. The first is by buying mining rigs, then renting out the processing power for profit. You can purchase mining rigs online, but the most effective method is to rent them from third party websites. For example, CoinTerra offers mining hardware rentals starting at around $10 per day.

The second method is to invest in publicly traded mining stocks that owns mining rigs. Companies such as Bitmain and Giga Watt provide mining rigs for use by investors. They also sell shares in their companies. Companies like Marathon digital holdings run mining operations that the public can invest into.

Many of these companies offer high returns, due to the significant amount of computing power involved in mining. However, they are also extremely risky investments. Since they are highly dependent upon the success of the underlying asset, investing in these companies is akin to placing bets against the market.

What are the advantages of mining stocks?

One of the biggest advantages of investing in mining stocks instead of hardware is that they are relatively risk-free. For many investors, the prospect of losing money on an expensive piece of equipment makes mining unappealing. However, mining stocks give you the ability to earn a return without putting up anything of value yourself. You can also easily liquidate your position if you decide to stop mining.

What are the advantages of buying Bitcoin miners?

On the other hand, some people believe that mining stocks are less profitable than owning mining rigs. This is because they must spend money on things such as rent, salaries, and maintenance. Also, since they are publicly traded, they have to maintain shareholder expectations. This means that they cannot operate in a manner that harms their business model, even if it results in lower profits. If they fail to meet these obligations, shareholders may lose confidence in their company, causing their stocks to crash.

In this sense, these companies are somewhat like regular businesses. They require management, marketing, and accounting. Additionally, they must abide by laws concerning corporate governance, and they must comply with the regulations of the SEC. All these factors put pressure on a Bitcoin mining company to maximize its profits, often at the expense of the individual miner.

How do I choose between hardware and mining stocks?

If you’re interested in crypto mining, the decision comes down to personal preference. Both methods allow you to participate in the industry, albeit in slightly different ways. If you prefer to manage your own assets, then you should opt for hardware. However, if you lack the technical knowledge required to set up and maintain mining equipment, then it may be worth buying shares in a publicly traded company.

It’s also important to keep in mind that these mining operations have gone public recently. This means that you could potentially see a return on your investment within a matter of months. This is something that you won’t be able to say about hardware, which takes years to generate a profit. If you’re willing to wait five or ten years to make a return, then hardware is probably the best option for you.

In conclusion

If you’re considering investing in mining stocks, then you should understand exactly what you’re getting into. Returns on some mining stocks are very similar to the mining rigs that you’d buy in a store. However, they are also subject to many of the same risks as any publicly traded company.

If you’re looking for an alternative to traditional investing, then mining stocks offer a unique opportunity. However, it’s important to remember that you’re taking a gamble when you invest in them.

Well Hello CEO: Top 15 Gold Stocks For 2020

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.

5 Reasons You Need To Invest In Mining Stocks In 2019

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.


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.


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!

Pros And Cons Of Investing In Mining Stocks [New Info]

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 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.


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.


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.

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!

A Beginner’s Guide To Investing In Mining

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.

Company Information for Caledonia Mining Corp

Company Statement

Canadian registered Caledonia is a mining, and exploration company with assets in Southern Africa. The Company’s current focus is its producing Blanket gold mine in Zimbabwe, the Rooipoort and Mapochsgronde platinum-nickel exploration projects in South Africa and the Nama cobalt-copper exploration project in Zambia.

The Blanket gold mine re-started production in April 2009 after a temporary suspension of activities in October 2008 due to the lack of foreign exchange in Zimbabwe. Blanket is currently ramping- up production to its current capacity of 24,000 ounces of gold per annum and is also completing an expansion project to increase annual production to 40,000 ounces of gold per annum.

The Rooipoort platinum-nickel exploration project is located on the northern limb of the Bushveld complex, about 300kms north of Johannesburg. The Mapochsgronde platinum group metal exploration project is located on the eastern limb of the Bushveld complex, about 175km north-east of Johannesburg.

The Nama Project is an advanced cobalt-copper exploration project in north-west Zambia. Caledonia has 4 mining licences covering approximately 860 square km. Exploration continues with a view to identifying an oxide resource of sufficient size and grade to support the large scale production of cobalt hydroxide.

Caledonia has a strong, experienced management team and Board of Directors with diverse expertise in gold production, exploration, mine development, finance and marketing.

Current Operations

Blanket Gold Mine

Located in the south-west of Zimbabwe Blanket Mine is wholly owned and operated by Caledonia, having been acquired from Kinross Gold Corporation in June 2006. The mine is 560 kms from Harare, the capital city and 150 kms from Bulawayo, the country’s second largest city. The provincial capital of Matabeleland South, Gwanda town is 16 kms from the mine.

Property Geology
The geology consists of a basal felsic unit of no known mineralisation presence.

It is generally on this lithology type that the various tailings disposal sites are located. Above this unit are the ultramafics that include the banded iron formations hosting the eastern dormant cluster and the ore bodies of the nearby Vubachikwe complex. The active Blanket ore bodies are found in the next unit, the mafics.

An andesitic unit caps this whole stratigraphy. A regional dolerite sill cuts the entire sequence from Vubachikwe through Blanket to Smiler.

Ore bodies at Blanket are epigenetic. They are associated with a later, regionally developed deformation zone characterized by areas of high strain, wrapping around relatively undeformed remnants of the original basaltic flows. It is within the higher strain regime that the wider of the ore bodies are located.

Rooipoort Platinum Project

(including Grasvally) -PGE/Ni/Cu

In 2002, Caledonia acquired the Rooipoort PGE/Ni/Cu Project from Anglo Platinum Limited. The property is in an area that is presently undergoing a surge in platinum group elements (“PGE”) exploration along a well-mineralized feature known as the “Platreef”. An additional 342 hectares on the farm Grasvally, immediately adjacent to and south of the Rooipoort property was optioned in 2004 and granted a New Order Prospecting Right in May 2005 (3 year period), with a further 43 hectares portion granted in April 2006 (5 year period). Application for conversion of the Rooipoort property into a new order right in terms of the Mineral and Petroleum Development Act (“MPRDA”) was granted in November 2006.

In March 2006, Caledonia concluded an agreement, with Falconbridge Ventures of Africa (Pty) Ltd (“Falconbridge”) to acquire a 100% interest in Falconbridge’s prospecting rights covering a total area of 4,315.81 hectares contiguous with the Company’s Rooipoort property and effectively doubles the area of Caledonia’s Rooipoort Project property underlain by Bushveld Complex rocks with PGM potential. The Falconbridge properties were granted New Order Prospecting Rights in April 2006 (3,099 hectares, for a period of 5 years) and September 2006 (1,217 hectares, for a period of 5 years). The total area of Caledonia’s New Order Prospecting Rights in the Rooipoort PGE/Ni/Cu properties is now 8,473.39 hectares.

To date, Caledonia has drilled a total of 18,450 meters in 54 holes on the Rooipoort PGE/Ni/Cu Exploration Project. This drilling covers the full 6 km strike length that makes up the project area.

Falconbridge has drilled a total of 7,393 meters in 22 holes on the portions of Grasvally and the farms Jaagbaan and Moordrift that comprise most of the property purchased from Falconbridge.

The drilling to date has enabled compilation of a revised stratigraphic subdivision for the area containing five mineralised horizons.

A very preliminary composite of the five mineralised units on the property containing intersections above 0.5 g/t combined platinum/palladium/gold values was assembled for preliminary metallurgical test work. These composites were tested at the SGS Lakefield laboratory in Johannesburg to evaluate their metallurgical characteristics. A simple coarse grinding followed by standard Bushveld platinum flotation showed that platinum/palladium/gold/copper and nickel could be readily concentrated at a very low mass pull. Despite the low head grade of the composite mineralised units the concentrate grades produced were extremely encouraging.

Nama Cobalt Property

Nama Group of Licences – Zambia

Caledonia Nama Limited, a wholly owned subsidiary of Caledonia, holds four contiguous Large Scale Mining Licences, which cover an area of 806 square kilometres on the northern extension of the Zambian Copperbelt and host open-pittable near-surface low grade cobalt /copper mineralization.

This area lies immediately north-west of the operating Konkola Copper mine and adjoins the extensive holdings of what was formerly Teal Mining and Exploration Limited (now a joint venture between African Rainbow Minerals and Vale).

Work Completed:
The 2001/2002 soil sampling program carried out jointly by Caledonia and BHP Billiton was completed over the majority of the original licence areas. This program identified a number of high priority anomalous targets within the required geological setting. These targets have been followed up in the search for copper/cobalt oxide and sulphide bodies. The top priority targets established by follow up drilling in 1996/7 were determined to be anomalies A, C, and D.

In the second quarter of 2004, a mini bulk sample of 30 tonnes was excavated at Nama A (Discovery) site and underwent successful screening tests and heavy media/gravity separation tests in South Africa. Following encouraging results, further one-tonne samples were sent for additional test work to fine tune the extraction process for the cobalt oxide.

During 2006 metallurgical test work has provided a proposed metallurgical flow-sheet. Two further bulk samples were taken from Anomaly A to enhance and refine the metallurgical processes and cost parameters for producing a marketable and economically viable cobalt product.

Also in 2006/2007 a Technical Report, compliant with NI 43-101 was prepared for Anomaly A at Nama by Mr. David Grant, C.Geol., FGS, Pr.Sci.Nat., an independent consultant who is the “Independent Qualified Person” for Nama’s resources as required by National Instrument 43-101 of the Canadian Securities Administrators.