If you are an educated investor and are not risk adverse than there is a great deal of money that can be made buying and
selling gold mining shares.
While
owning gold mining shares can be a profitable approach to gold investment, there are many advantages to owning physical gold instead.
This goes back to the first point where I explained that
gold mining shares fell through 2008 as the price of gold rose.
He understands that markets have cycles, in particular highly
volatile gold mining shares, and helps his subscribers navigate pitfalls by selecting the right securities which can dramatically outperform while cutting losses quickly.
Somebody once did a study, and I think he determined that more money has been lost
in gold mining shares than any other industry in America, including airlines and railroads at one time.
It will invest up to 80 % of its net assets mainly
in gold mining shares and other gold - related companies and upt to 12.5 % of its net assets in gold and silver coins as well as gold, silver, platinum and palladium bullion.
30 years ago if you wanted to buy gold, you were almost restricted to
gold mining shares.
To protect his own wealth Jay began to invest in gold and
gold mining shares and in 1981 he began sharing his success and insights in his newsletter.
The rationale was simple: If gold rises,
the gold mining shares would rise in greater proportion.
The reality is that
gold mining shares are equities and they will behave as such regardless of what the gold itself is doing.
If production costs and operating expenses rise,
gold mining shares can fall even as the price of gold increases.
Physical gold has a larger market size and trading volume than
gold mining shares and can be accepted globally.
Gold mining shares, on the other hand, are extremely speculative.
In the face of volatile markets, it can be difficult to sell
you gold mining shares, especially for anything close to what you paid.
Gold mining shares are equity just like any other stock investment.
The OCM Gold Fund is designed for investors desiring diversification of their investment portfolio with a gold related asset to hedge against currency devaluation or inflation and are willing to accept the risk and volatility associated with investments in gold and
gold mining shares.
In my opinion, once December comes and goes with the announcement of no interest rate hike,
gold mining shares will soar along with the price of physical bullion.