I’m an absolutely huge fan of gold mining stocks. Out of all of the ways to invest in gold, gold bullion coins, and gold mining stocks are the two that I use exclusively. I’ll be explaining why this is the case in this article and several more articles to come in the very near future.
Gold mining stocks allow you to actually have a dividend income — that’s effectually a passive income. This is something that just owning lumps of gold don’t give you. If you buy a ton of gold coins, those gold coins will only make you money once you sell enough to recover from the original expense — doing this could take years, and that’s time you’re not earning anything.
Gold mining stocks are different, for obvious reasons. They pay dividends. You buy a million dollars worth of gold stocks, and they’ll pay you — even before you sell them off. That’s an income asset rather than just a speculator asset.
Speaking of gold speculating, you can do that with gold stocks as well. The reason is simple. Think gold’s going to hit new highs? Then buy gold stocks — they’ll eventually track the price of gold on upwards, as well as still pay you the passive income. This is a win-win situation, here.
Gold is secure. Gold is money, always has and always will be. Buying gold is one of the most secure ways you can invest today. Buying a gold stock is one of the best ways to invest because it’s as secure as gold, as passive as dividend stocks, and as lucrative as precious metals.
Gold stocks are the best of all worlds — easily. That’s one of the reasons I have precious metals stocks as my favorite industry to invest in if I’m going the Wall Street route.
What About Gold Coins?
As most of you know, I own a website that’s all about gold coins. So I’m sure you’re wondering, “Why on earth is he dissing physical gold assets?” The answer is simple: I’m a huge fan of physical gold assets as well.
Holding physical assets is essential for the sake of complete security — if the world comes tumbling down, owning pieces of paper claiming you can get nuggets out of a mine in Nevada is mostly worthless. Owning a safe full of gold bullion coins isn’t worthless.
So do both. Don’t put all your eggs in one basket.
What About the Gold ETF?
I hate the gold ETF. It’s usually pure speculation, you don’t own any physical gold, if the world ends you’re messed up, it’s too risky, there’s tons of opportunity for fraud, and it’s just a bad idea all around. This also goes for the silver ETF and most other precious metals ETFs.
In the end, investing in gold mining stocks provides you with a secure, passive income, and let’s you cash in on the coming boom in gold prices. What’s not to like?