Investing in mining is a smart choice since the value of precious metals goes beyond the price. Why? Let’s see.
It is well known that there are two types of stocks in the mining sector: the major and the junior. The major stocks are the ones gotten from mines that have been profitable for a long time. Those mines have been opened for many years and give a quite stable cash flow. Of course, these mines are a secure, bet but the cash flow is very slow.
The junior stocks are the ones devoted to new mines or new companies starting in the business, and that are not as reliable as the old ones. They seem to be risky because it is not certain that the cash flow will continue for years. But the junior stocks have the big advantage that can be bought as Penny Stocks, which means that you can buy stocks even for one penny.
Are they a risk? If you do it in the right way on the right time, it will certainly bring so many benefits that you won’t regret it at all. So, investing in the mining sector might be risky, but also profitable when it is well done. Investing in junior stocks is a bet you want to take.
The true value of precious metals
Let’s imagine that you want to invest in a gold and precious metals mine. You find a new one, but you don’t know how safe your investment is. A feasibility study is done to that mine and the numbers show that there are mayor possibilities to find exactly what they are looking for: precious metals. In that very moment, its stocks will rise to heaven, and so will your money.
Generally speaking, the junior mining will not dig out all the values in the mine to the very end. What they might do is sell the mine to a bigger mining company and continue looking for other mines. And again, the stocks rise. So now the money invested becomes secure, because your stocks belong to an old secure company. You have won a lot and it will continue bringing more money into your pocket.
Also, consider this: the value of precious metals rarely go down, on the contrary, they tend to rise higher and higher. Actually, it is said that the next bull-market for gold would happen if Donald Trump wins the presidential elections held in the US, coming on November. But, even if he doesn’t win, the price of gold will still be stable. Stock analysts are betting for gold and precious metals. So, instead of losing value, gold and metals gain more value. It is a secure bet.
Where to invest? Should you go for major mining stocks or junior mining stocks? The first ones are stable and slow, but quite secure; remember, nothing is written in the stock market. The second ones, even though they are comparatively risky, are an investment that will make you produce more money in a short period. Big money. Investing in Penny Stocks directed to mining assures you a quick ROI, and it will help you to capitalize, letting you grow big in a short time. Anyway, do consult a professional on the matter, he will help you to make the right choice.