We all known the value of common everyday items that we purchase regularly, however there is also a value attached to things that we probably don’t encounter everyday. One of those things is gold, and obviously there is a lot of value attached to this item. Most of us are not able to purchase the metal itself, however there are ways to share in the increases in value of this commodity.
All you have to do in order to benefit from the price increases in gold is to purchase some gold stocks. These stocks either directly hold gold or deal in it. That means that the company that the stock represents deals with gold on a daily basis in some way. It could be a company that actually digs up the gold or one that sells it to jewelry stores and customers around the world. Any way you look at it, these stocks are going to be benefiting from increases in prices of gold. If you purchase the stocks, then you too will benefit.
Not all gold stocks are built equally, and you want only the best of the best to be in your portfolio. Some of the best types of gold stocks are ones that pay out a dividend. This dividend is a piece of the earnings that the companies are paying out to it’s shareholders. This means that you get paid money each quarter just for holding some of the shares of the company. This can be a great benefit if you are going into retirement, or if you could just use the extra income for your basic needs.
There are other benefits to holding dividend paying stocks, but what you want to know is which ones are the best gold mining stocks or silver mining stocks. Rather than naming specific stock names that could change day to day it would be more important to name some basic criteria that the best stocks have. You are going to want to look for dividend paying gold stocks that pay out dividend rates of 3%-7%.
If you are looking at stocks that have higher interest rates, then they may be at risk for cutting or eliminating that dividend. Avoid those stocks. You are also going to want to take a look at gold stocks that are at relatively low P/E ratios. The best ones will have P/E rations of 8-12. All of this information about specific stocks can be found on your favorite financial website.