I like to buy and sell my own stocks because it is cheaper and well…if I make a mistake then I can learn from it firsthand. But everyone is different. Some don’t have the time or the desire to run their own stocks so they put it in hands, which they hope will buy and sell their stocks wisely for them. They have to pay a broker’s fee for this service.
Let’s say that money is not a problem and you have some money that needs a place to grow, it’s not needed to feed your family. So, do we buy solid gold, gold stocks, or both? What is the difference? Most know that having stocks is like owning a part of the company. The more stock you own, the more you own of that company.
Gold coins are the metal itself that the mining companies mine out of the ground. It will have less rise if gold falls. Because when gold falls, let’s say from $1200 an ounce today to maybe around $300 an ounce where it was a few years ago, the gold coin you hold in your hand will still be worth $300 at the end of the day. But if you have gold stocks, that company may not be able to make money at that low of a price per oz, then the company goes ten-toes-up leaving you with nothing at all. Raw gold has that good old fall-back approach that should not be forgotten. It is the medal itself that drives the gold stocks of a well-run company up or down for the most part. Gold will always be gold at the end of the day that you can hold in your hand. Gold moves up or down as the demand increases or decreases.
Stocks on the other hand, have more facets or ways to make money for you. The company owning the gold asset that is mined out of the ground, has the ability to buy other companies they believe they can make more money with. Or they can find more gold, or branch off into other mining commodities like silver, copper, or oil. These companies can do this with the money that is made from selling stocks to you and making more money from the mines it owns. If it is a good investment with good management, the stock should grow faster than the gold you hold in your hand. But on the flipside, a poorly managed gold company can drive your stock into the ground while the price of gold is on the rise.
Small capital gold companies are known as penny stocks. Penny stocks range in price from a few cents to several dollars depending on how many stocks were made available to the public. Penny stocks are high risk, but also can have high returns…at times.
Be a wise buyer of investments. Look for the investments that will grow over the long term. Look for well-run companies. This will take a lot of the risk and fear out of your investment but will also have greater growth potential.
I need to make myself clear here. I do not give financial advise to you, or anyone for that matter. Financial advise I believe should put into balance with educating one’s self. Know the risks, then choose wisely, taking responsibility for your own hard earned money. At the end of the day, you can learn from your gains and mistakes made with your money should make you wiser, but that dose not mean you will never have a loss, just learn from them what you can. Like a good book read no the investing in general, Rick Dad, Poor Dad, you need to be money smart. Hold your money tight and invest it into what you enjoy that grows in value or that you believe to have the best growth potential. The higher the risk of losing your money may also mean a higher growth, penny stock this kind of investing should be only done with money you are not afraid to lose, and can afford to loss, don’t use your gas money.