If you are looking to buy gold stocks, you can invest in mining companies. This will have you stock picking several mining companies to put in your portfolio. However, you must choose carefully as some of your stock picks in the mining sector may not perform. Many investors trading stocks in gold companies think that if the price of gold goes up, then mining companies will automatically see an increase in their share price. This is not true for gold trading and is the reason why you should do a fundamental analysis of the company you are going to invest in.
There are many things to consider when looking at a mining company. It is important to look at management, the competition it faces from other mining companies, its financial health, and how much proven reserves it has. These are a few points that need to be looked into before you consider it a good stock pick. If the company has been operating at a loss or it has large debts, then an increase in gold prices may not reflect on the company’s share price. Other thing you can do to make gold trading profitable is to perform a technical analysis of the gold market prices. This will help you identify trends in the stock price, as well as help you find out where it may make a reversal.
GETFs or gold exchange-traded funds are another way that you can get involved in gold trading. In the stock market today, you will find gold exchange traded funds on the major exchanges. When gold trading with ETFs, a commission of about 0.4% is charged. Some ETFS will hold physical gold and they will have an annual charge for storage. It is important to find out what your ETFs policies are and if they are holding actual gold.
You can also look at gold accounts as an alternative to gold trading. Gold accounts are becoming very popular among investors who want trade in gold. These are accounts that let you buy and sell gold as if you were trading stocks or foreign currency. If you are new to investing in gold stocks, you should look to enlist the services of a broker who can provide you with advice and stock tips on mining companies, or help you with trading on futures and options. This will help minimize your risk at the beginning until you are more experienced in gold trading.