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What's the Best Way for a Beginner to Invest in Gold

Is it better to invest in gold or silver?

By James JacksonPublished 5 years ago 2 min read
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Discussing all strong and weak sides along with the best ways to invest in gold is necessary to clearly understand the reasons for such types of investments. The investors around the world are still interested in gold mining projects, but the structure of investors has changed significantly recently.

Is it better to invest in gold or silver?

The good news for the industry is that the frank speculators, those investors who came in during high prices and high expectations have been gone away from the market. It is now a good time to invest in gold because only professional investors with the necessary stock of liquidity, which are able to develop the project, wait until the situation on the market again become favorable, and then, if necessary, sell with a profit remain.

Despite that, the easiest way to invest in gold is the preferred investment tool. For many investors, silver investments is definitely worth to be considered as the most promising alternative. No matter that nowadays silver is significantly inferior to gold in terms of sales in the world the experts predict the bright future for this asset.

Why do people in invest in gold?

According to the latest estimates of analysts, 10 years after the financial crisis the situation in the world economy will continue to stabilize. This is evidenced by last year's economic growth, especially in the countries which the largest gold markets in the world. Therefore, the demand for gold in the world will have stable support in the future causing the most importance for the investor to question what is the best way to invest in gold?

Supplying abroad raw mineral components Kazakhstan mining industry makes 85 percent of its exports. Geographical location is one of the advantages that will help the Republic of Kazakhstan to implement economic development plans. In addition, the experts notice:

  • the growing economic potential of the state;
  • financial stability;
  • strong educational base;
  • the availability of a large number of qualified specialists.

How to Invest in Gold Mining Companies

Given the current market trends, instead of huge, but not always profitable Kazakhstan gold deposits, investors are now looking not the largest, but highly profitable deposits. However, deposits of different types are found in all regions of the country.

Nevertheless, the leading position is occupied by the deposits of the Eastern, Northern and Central Kazakhstan. Currently, gold mine investment licenses are issued for approximately half of the number of deposits with over more than 30 in operations. Traditionally, most of the gold is extracted from complex precious metal mines.

The investors, of course, look at the operating profitability of production, but, to a much greater extent, on the return on capital. Means if they can buy today an asset at an acceptable price and get the return on invested capital on the way out of the investment or during its operation which considers worthy and sufficient.

Nevertheless, buying shares of gold mining corporations is one of the best gold investments. Often stocks of gold mining companies grow faster than the metal itself. They can be easily bought or sold on the market. In contrast to physical metal, they do not require special storage conditions, as well as insurance. All these factors definitely minimize the possible risks of investing in gold.

In the context of the unique prospects of investing in gold mining industry, it is necessary to note that direct investments are the most beneficial. The obtaining of a controlling interest in a reliable gold mining company like GC Kazspecgeology LTD practically guarantees a high profit. Undoubtedly, it is also necessary to take into account the capacity and development prospects of the enterprise itself before the investing.

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