How To Buy Gold Stocks in Canada?

How to Buy Gold Stocks in CanadaHave you been lately wondering how to buy gold stocks in Canada? Here we present some basics on how to buy gold stocks in Canada and what necessary skill and tools you need to venture into the volatile world of precious metals stocks.

The first step is deciding how much to invest, leading stock analysts do not recommend you put more than 5 or 10% of your entire portfolio into the precious metals stock market due to its extreme volatility. Once you set aside a certain amount of funds, you need to open up an online brokerage account and link your bank account to it. It’s essential you stick to your gold stock investment fund and not borrow more money to invest in case you experience losses. Being overleveraged in the stock market is not a good thing.

Gold stocks prices are not based on the spot price of gold but mainly depend on the financial performance of a certain gold mining company. There are so many factors that go into performance of precious metals stocks, namely, geographical position of mines, gold exploration strategies, product placement, production costs and many more. If you are seriously determined to learn how to buy gold stocks in Canada, it helps for you to learn how to analyze stock charts, read financial reports and know when to buy and sell.

As a general rule on how to buy gold stocks in Canada, consider major and junior gold mining companies. Look at their historical performance charts, learn about these companies as much as you can through a variety of news publications and reviews. Analyze where they place their mining sites on the map. The more politically stable the area is, the better a mining company will perform in the long run. Mining sites positioned in politically questionable areas are prone to various unfavorable scenarios that might cost the company in considerable losses inadvertently leading to poor stock performance.

Some of Canada’s most prominent gold mining companies are Kinross Gold, Agnico Eagle Mines, Eldorado Gold and Yamana Gold. Among junior gold companies are worth mentioning Royal Gold, Lihir Gold, Gammon Gold Inc. and others.

For those who still would like to learn more on how to buy gold stocks in Canada, it’s nice to know that you can invest in alternative gold investment mechanism that is traded similarly to stocks and has its own gold bullion ticker, a gold ETF. Canadian gold bullion ETF’s allow you to invest in gold without taking physical possession of gold bullion bars or coins.

Wondering how to buy gold stocks in India? We have plenty of information in our other articles presented on the website.