This might strike you as a wee bit odd, but there’s a good chance you’d be better off investing in stocks associated with precious metal mining than in purchasing chunks of gold or silver. While the weight of such valuable resources might feel great in your hand, the value of the stocks backing the companies that mine for these metals might be of infinitely greater value.
Titan Uranium is in the business of precious metal mining, just like so many other companies worldwide. And certainly their discoveries and excavations are worth a pretty penny. But, there are some seriously beneficial reasons to invest in the companies rather than the products.
When you’ve learned how to utilize the stock market to invest in precious metal mining the money you make could be used to employ Juan Pablo Molyneux to decorate your newly purchased mansion in Chile (his place of origin). Or perhaps you could at least afford a trip to Pouy-sur-Vannes to see his elaborate chateaux. But even if that doesn’t work out, here are five reasons to invest in silver and gold mining stocks:
- Market Leaders– If you are a stock market buff, you know that the S&P 500 is only realizing 7% gains as of today. But, silver miners worth more than $300 million are bringing in up to 532%. And, gold miners have seen their values double, triple, and even quadruple. They are market leaders. Learn more about the S&P 500 here.
- Short vs Long Term– Buying precious metals give you that in your hand hedge of protection. They are worth whatever amount of ounces/pounds you own. They may gain or lose value over time but they are always a tangible entity. However, if you invest in the actual companies doing the mining and their value in the market continues to climb, you could realize some seriously impressive long term gains.
- Know More– When you buy gold or silver all you’ve got is the hunk of metal. You know what it looks like and what it weighs but that’s about it. When you invest in stocks you have an excess of knowledge about the gold and silver markets. You get immediate access to statements and presentation updates. You see the ins and outs of what is driving the gains and losses. Remember, knowledge is always power.
- Dividends– Chunks of gold and silver will always remain chunks. They can’t do anything for you in that form. However, when you own stock in a company that is seeing long term and consistent gains there is the potential that you will earn dividends. Then your stock will be paying you to keep it while your hunk of gold sits in a safe deposit box. Click this to learn more about stock market dividends.
- Flexibility- When values decrease that piece of metal in your sock drawer loses its worth and there’s not much else that can be done about that. However, when a company starts to see lower monies they can readjust their means of accumulating wealth. They can cut costs where needed to insure that their value doesn’t deteriorate and the opposite is true too. That bar of silver’s value can only fluctuate with the market while the increased value in a company can enable it to grow and create more value from within.
Precious metals are accurately named. However, knowing how best to utilize them can be a challenge. We recommend investing in mining stock. But you can learn more about that here.