This video is the first in a series on learning to invest in gold mining stocks. There are four key points discussed in this video:
1. Agggressive Growth: Small cap mining stocks constitute an aggressive growth opportunity, with certain stocks yielding several hundred percent gains in a few years time. However, these opportunities are rare, and the small cap mining stocks are ultimately high risk opportunities prone to losing a significant amount of value and enduring great volatility.
2. Dividends: Established mining firms can issue dividends. For those interested in buy and hold strategies focused on the gold market, investing in major producers can be a way to earn dividends in addition to share price appreciation while capital is tied up.
3. Relatively undervalued: While mining stocks and gold bullion are NOT interchangeable, they are driven by many of the same factors. When the spread between mining stocks and bullions widens, it can signal an opportunity for appreciation in mining stocks.
4. The Next Bubble: As inflationary monetary policy continues, many are speculating as to what the next bubble will be. As funds have not yet rushed into gold but as the idea continues to get mainstream attention, mining stocks may be the next opportunity.
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