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Gold Stock Mining Shares

There is another way to buy gold and that is by owning or buying shares in gold mining companies. Over the years there has been absolute fortunes made by owning gold stocks in gold mining companies. You can buy mining shares and gold mining stocks online from almost any online broker. Most of these stocks will trade on the TSX exchang which is the Toronto Stock Exchange in Canada. Reson being is that Canada is known around the globe as the world leader in mining companies. Canada has more mining companies than any other country has.

Finding a gold mining company to buy stocks in can be a very tricky proposition. Most of the gold mining shares are owned by companies called junior mining companies. These are small companies that go out and explore to the deposits. To give you an example how tricky it can be, did you know that there is over 1600 of these companies listed in Canada alone? That is where the so called risk reward ratio comes into effect. With 1600 mining companies out there, how do you choose which one?

One of the best way to choose though is by finding the big well established mining company. The ones that are house hold names like Barrick Gold or Goldcorp and Eldorado Gold. These are old companies that have been around for long time and have mines with large deposits. The stock price might be high and in double digit prices but the stock price usally does not fluctuate that much. As an added bonus, some of these larger companies will pay you a dividend and getting a dividend cheque is something worth while for sure.

There are also some companies that are called gold royalty companies. These are companies that are gold mining and will pay the shareholders a dividend in gold instead of cash or shares. Companies like Royal Gold are gold royalty companies. You can own shares in a trading account or you can oder the certificates and keep them on hand for your own safe keeping.

There is also what is called private venture funds and that is where a group of people may put money up to buy an active gold mining operation. This is sometimes called venture capital or joint venture capital. Because mining is an expensive operation it can take a lot of money to get started and the amount of money is more than one person can handle. Thus the idea of partners whether silent or active. When you do particpate in these kinds of ventures you can take your percentage of profits back in gold.