Gold mining stocks are one of the best gold investments you can buy, along side literally storing up gold coins.
Gold bullion coins are good for having physical gold on hand for worst-case scenarios, but gold mining stocks are fantastic for a generating an income, investing in a vital market, and indirectly profiting from a gold bull market.
Keep reading to see what all of the reasons buying gold mining stocks are:
- Gold Production is Going Down. Gold has continued to be produced less and less over the last few decades. The reason is simple: we’re running out of gold in the dirt. There will always be gold, of course — just not enough to quench demand, and eventually population growth will outstrip production. That means we’ll enter a perpetually bullish gold market.
- Gold Mining Stocks Pay Dividends. I’m a huge fan of dividend investing. By owning dividend stocks, you can generate a full-time income without ever selling your holdings. This means you effectually sit on a permanent income. That’s kind of awesome, and another reason to go with gold mining stocks.
- Gold Mining Stocks Can be Easily Liquidated. If you own a large percentage of your portfolio in gold stocks, you can still easily liquidate and get cash for your stocks if you need funds all of the sudden. Though I’m a fan of sitting on stocks for the sake of dividend investing (like I explained above), that doesn’t mean you should never liquidate. If you need to liquidate, gold mining stocks offer that option.
- Gold Mining Stocks Are “Real” Investments. This is going to sound crazy to most investors, but it really does make sense: most investments are just shuffling papers. It’s mostly pretend. But mining stocks in general are different: you’re buying stocks in an actual company — physical assets, physical gold, physical mines. Rather than a gold ETF that just tracks the price of gold, by investing in a gold stock you’ll actually own part of a business. This makes more sense, and is more secure for the long haul.
In the end, gold mining stocks are my second favorite way to invest in gold after just buying bullion gold coins.
Buying bullion coins is the best way to invest in gold, at least in my opinion, because it allows you to physically touch and hold your investment — chances of it disappearing if you take good care of it are slim.
Gold stocks are a safe and profitable bet in the future, which is why I’m planning on increasing my gold mining stock holdings as well.
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