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Mining Stocks
Are mining stocks a safe investment? If you are a serious investor, it is likely that you have seen the hundreds of teaser ads that come out every year about the mining stock that is going to return 10,000% on your investment. I have seen advertisements touting gold, silver, cobalt, copper, nickel, rare earth, aluminum, titanium, molybdenium and uranium. Each advertisement entices its readers with promises of huge gains in a short period of time. Of course they always list several examples of stocks that went from .50 cents a share to $100 in two years. Some even claim that they recommended the massive gainer in its infant stages. However, I have been investing for a long time and I have never seen a financial newsletter hit the motherload with one of these stocks. There have been a few occasions where I have seen a newsletter net 300% gains for its readers, but that is very rare. The usual scenario is a small gain or a huge loss. I invested in precious metal mining companies three different times in my life. The results were the same each time. I hit my stop/loss of 25%. After the third straight loss, I decided to avoid them altogether.
Mining Stocks that produce natural resources are a different animal. These securities are much more stable and predictable. Commoditites such as Oil, Coal and Natural gas are more abundant. Many of the natural resource companies do provide investors with the opportunity to obtain generous long-term growth. The escalating demand for natural resources appears to have no end in sight. China, India and other emerging economies are consuming energy at an ever increasing rate. Investing in an established mining company that produces an in-demand commodity with regular consistency, is the best way to profit from this sector. I have isolated a mining company that will produce generous long-term growth for many years to come.
Mining Stocks Recommendations
Return to Home Page The Disclaimer: I am not a Registered Investment Advisor. Everything on this website is my opinion and put here for my readers enjoyment. I do not recommend making financial decisions based upon my opinions. I advocate doing your own research and making an informed decision. I openly disclose ownership in any stock I discuss. All information I provide on this website is obtained freely via the internet, radio and television. I do not have any deals with financial newsletters of any kind. My income from this website is produced from advertisements plainly displayed on the pages. |