Investing advice: Six tips for buying shares in gold companies

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Here’s what investors need to think about when considering buying shares in a gold miner.

Gold has been a store of value that has lasted an age. Prized for its beauty and non-corrosive elements, gold is an investment that, despite price volatility, is often viewedIn the current environment where there are fears of macroeconomic implosions, geopolitical melt-downs and asset bubbles, many investors recently haveGold explorers that are not yet producing or cash flow positive may not be attractive to investors.

Gold explorers that are not yet producing or cash flow positive do not exhibit the safety properties investors may be seeking.Investors should know the amount of gold a company is sitting on, including the estimated mine life. Without it, you really don’t have a mining business.As an added focus, look for reserve upgrades so that resources can be replenished, because once the commodity comes out of the ground, it’s gone.

 

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